Ali Ata: Finding the Next Hip Neighborhood to Invest In

If you’re looking to invest in order to build wealth, one of the best baskets to put your money in is real estate. Just ask real estate investment guru Ali Ata. A popular strategy among real estate investors is to invest in up-and-coming neighborhoods, taking advantage of their eventual increase in value to generate returns. This strategy, however, leans on your ability to spot the next “hot” spot. Here’s how you can do just that:

1. Go where the cool people are

Artists and musicians tend to go to places with cheap rent. People like living somewhere hip, so they tend to gravitate toward places where people who are perceived as cool—such as artists and musicians—live, or somewhere close. As the number of people in the community grows, so does its popularity and real estate value. This is also true for places close to trendy establishments, such as a famous gallery or museum, or tourist attractions.

2. Or where young people are

Another group of people you need to watch out for are young people. Like artists and musicians, they tend to excel at finding places that are cheap. Their arrival often leads to the resurgence of neglected neighborhoods, and the development of businesses seeking to address the demand they create.

3. Find rising prices

When you’re checking out neighborhoods, Ali Ata says you should look at price changes in the area. Locations where the price of commodities, such as coffee, is continuously rising are usually seeing a steady increase in popularity and population.

4. Look for ongoing renovations

Major renovations, such as an area being cleaned up or a park being built, means the city is willing to invest in the locale. This can only mean that the location is likely on its way up. Check for other signs, such as houses being remodeled in the area, for added certainty.

Real estate investment promises less risks compared to other types of investments, as well as potentially better returns. You’ll get even better outcomes if you dedicate time and effort into finding the best area to invest in.