When it comes to making a value buy in the Denver real estate market, you are likely inclined to buy the worst house in the best neighborhood. A recent article by Quartz suggests it’s a myth to believe buying the worst house in the most affluent neighborhood will be a surefire investment. People who follow the strategy assume that the more expensive homes in the area will bring up the value of the smaller or less valuable homes. For people buying in Downtown Denver, the situation is a little different. That’s because researchers found there is a distinct difference between affluent neighborhoods and hip or up-and-coming neighborhoods such as LoDo, RiNo, LoHi, Washington Park and other downtown Denver neighborhood hot spots. In the case of up-and-coming neighborhoods, the “worst” homes do appreciate rapidly in value.
Looking for old-fashioned value
One of the nice things about buying in a hip downtown Denver neighborhood is that you don’t have to buy a short sale or foreclosure in order to find value. According to Quartz research, even homes valued at the bottom 10 percent turn a nice profit in a hot neighborhood. Experts define a hot or up-and-coming neighborhood as one that has benefited from above average home value appreciation for several years in a row.
Living in a gentrified neighborhood
Experts advise value hunters to search in “gentrified” neighborhoods where developers plan to build or have built upscale apartments, lofts and condos. In downtown Denver, the value of single-family homes in the area increase as builders ask for higher prices on old warehouses converted into luxury lofts and other urban infill projects. For example, RiNo is a former warehouse district that people now consider a transitional neighborhood with great appeal.
Finding homes with character
Another way to find value in downtown Denver is to locate homes with vintage appeal. Many homebuyers seek out Victorian homes, Tudor-revival and the American Foursquare. As time goes on, some of the older homes fall into disrepair and people tear them down. When you restore a vintage home, you preserve a piece of the past. And the home often goes up in value because there aren’t as many of them.
At Peter Hauben Real Estate, we focus on customer service. We can help you find a deal on a single-family home, loft or condo in the hippest downtown Denver neighborhoods.[idx-platinum-widget id =”9594-30700″]