Gentrification
Gentrification
** Oil marks! How to detect gentrification. **
Gentrification is every investor's wet dream. It is a wave of urban renewal and demographic change going on in a particular neighborhood. The change translates into a sharp rise in value in a very short time. Here are some things I learned about the stages of gentrification.
1. The processes initially occur under the ground, the comps are confusing and at a wide range of prices which is usually a sign that the neighborhood is undergoing change. When the hipsters arrive later, you've missed half the opportunity and when the dam breaks out prices will fly up within weeks, sometimes hundreds of percent.
2. Investors flocking en masse to land deals or homes at a discount.
3. These are ongoing processes for an adjacent neighborhood that has already undergone a change.
4. Proximity to city centers, employment centers or universities and good urban transport.
5. In the first stage artists will enter, you will see sophisticated graffiti and flags of the gay community (a strange phenomenon worth exploring). The skateboards will arrive later.
6. Cafes, hummus (yes, that's no mistake) and vegan restaurants will replace corner containers.
7. New expensive construction.
The sooner we get to the process, the more value we will enjoy, but we will increase exposure and risk. There is always the risk that the change will take a few blocks before the property we have invested in.
In the photos you can see the deals that have been closed in the last 90 days in Kensington Philadelphia and South Fort Richmond which is currently in the middle of the process and you can still find bargains there. Pictured is a recently opened cafe. We are trying to capture there right now almost any asset that moves for our investors.
https://www.facebook.com/1885945295012997/posts/2330516273889228
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I invested there in germantown avn
Nadav Doron
Do not forget… The LGBT community visits the area.
Apologies for the comment but always always in developing neighborhoods there is a relatively developed community of LGBT people, they bring with them the trends you mentioned, they are looking for the low price and do not care so much about the level of educational institutions in the area (usually initially relatively low).
So look for colorful flags. 😉 This is another small feature
For two years I've been collecting everything I can. We need to cooperate
Look strong! Which areas do you see with the highest potential?