Location, Location, Location: Part II

Location, Location, Location
Anthony Pierpont

Location, Location, Location with Anthony Pierpont

That said you might not always want to move into the best neighborhood near the city center.  Maybe you can’t afford that area and would like something cheaper.  In that case go for the second best area.  Look at what is being done to that area as far as housing remodeling.  Also look once again for opening shops, coffee houses, and restaurants.  The second best area will sometimes overtake the best neighborhoods and you have gotten in at a better price.  However that said the appreciation of these homes is still the same as it is in the best areas.

Strange as it sounds the next way to look at appreciation and future appreciation is called the Starbucks affect.  Zillow did a study and found that properties near the coffee shop Starbucks typically has a high appreciation rate.  Now you will find Starbucks in predominately good neighborhoods with good appreciation but this appreciation tended to increase once the Starbucks came into the neighborhood.  Now I was not a big believer in a coffee shop increasing the appreciation on your home but the numbers do not lie.  Zillow also looked at other coffee shops and even though they did have good appreciations in those neighborhoods they were eclipsed by the appreciation seen with the Starbucks affect.


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