The “Cappuccino Test”
You will often hear how you should buy in “up and coming” areas. But what does this mean? Well there is a test for this. English firm Virgin One created the “Cappuccino Test” for an area, based on interviews with over 1,100 buyers and real estate agents.
The test showed up trends or signs to watch for that helped define an area as “up and coming”. The first part of the test is to see if there is a decent cafe within reasonable walking distance of the home you are looking at (hence the name of the test)
The next thing to look for is a shopping centre nearby that offers trendy shops and particularly a bookstore that is part of a national chain. Also important apparently are the makes of cars in driveways and how well kept the houses and gardens are.
On the other side of the ledger, groups of youths hanging around shops, lots of traffic, older cars, unkempt sections and barking dogs give the impression that the area is declining in value.
The final piece of the jigsaw in determining whether an area is “up and coming” is its name. But that’s a story for next time.
Filed under: REAL ESTATE | Tagged: Real Estate