Any property investor will tell you that the quality of a neighborhood can make or break its potential as a place to buy rental properties. If the neighborhood has a lot to offer in terms of transportation, employment opportunities, and great schools (with low crime rates and decent governmental support), it’s going to attract more demand – and justify higher rental prices and faster growth.
But many investors don’t realize how valuable it can be to find an area with a new influx of artists and musicians. In fact, artistic neighborhoods often set the stage for ideal investment properties – but why is this the case?
The “starving artist” stereotype doesn’t always hold true, but it’s undeniable that many artists trying to make their work commercially viable are unsuccessful; additionally, because they’re trying to pursue their creative work full-time, they may not have much consistent income. Accordingly, they tend to seek out areas with lower rent prices and more affordable neighborhoods.
If an area is attracting a lot of artists and musicians, it’s probably because the area has cheap property – which is a strong signal to property investors that there are potentially valuable acquisitions to find. After noticing artists gathering together in an area, you can use a combination of rent estimate calculators and property search engines to find new purchasing opportunities that make financial sense.
Artists also tend to be attracted to areas they find interesting, or those where they find lots of inspiration. They may be attracted to older areas of town, where all the homes are distinguished by outdated architectural styles, or they may want to live somewhere close to nature.
Whatever the case, if hundreds of artists find it interesting, chances are, the broader population will find it interesting too. This area will therefore have significant potential for long-term growth and development.
One of the more obvious benefits of having artists in a given area is that they often work to beautify the area. They may open up new art galleries and opportunities to display their work. They may paint murals on the sides of buildings or in public areas. Even graffiti artists who are sufficiently talented can make an area more visibly interesting and more exciting to others. Over time, the entire neighborhood will likely become more beautiful.
Artistic areas also tend to generate a lot of buzz. If popular bands are playing in the same area where famous artists are trading their latest work, it’s going to pull people from neighborhoods in the surrounding areas. People are going to flock in to see concerts, buy art, and be part of the “hip” scene. Eventually, that’s going to result in much higher demand for properties in the area, higher rent prices, and greater property appreciation.
This can take some time to develop, but that’s a good thing for property investors. It means you can often buy properties for low prices and benefit from the long-term growth curve even more.
Over time, as the area becomes better known for its ability to support and sustain artists, it’s going to develop a better reputation. People are going to hold the neighborhood in higher esteem, ultimately resulting in effects like:
So do all these benefits mean you should always invest in property in areas with lots of artists? The short answer is no. Property investing is a complex strategy that requires your attention on a multitude of different variables. An influx of new artists and musicians can be a signal that prices are currently low, while being set to grow rapidly in the future. But it’s still your responsibility to do your due diligence and review the other factors that could influence your property’s profitability.