In previous articles, we've discussed the various red flags of which you should be aware when you're scoping out a neighborhood as a prospective apartment-renter. Neighborhoods filled with multifamily properties are more transient by nature and may be more vulnerable to theft, since neighbors aren't as likely to establish long and trusting relationships. While it's always important to investigate your prospective neighborhood as a renter or a potential buyer, if you're preparing to purchase a home, the stakes are particularly high. When you're renting and you discover later on that the neighborhood leaves a lot to be desired, you leave. Granted, it's a hassle and an expense, but it's usually feasible. Buying, on the other hand, is a major commitment, so you'd better be positive that the street you're considering, as well as the surrounding area, are safe. With those high stakes in mind, we'll go into further detail about the process of investigating a neighborhood for its general safety.

There are two types of bad neighborhoods: Those that hit you over the head with their seediness, and others that disguise themselves. The second variety maintains a sort of dual personality. These neighborhoods do an excellent job of disguising their true identities. During the daylight hours, everything seems fine. The neighborhood is quiet with little activity. At night, however, the "freaks" come out, so to speak. People loiter on corners, and petty theft and other crimes are common. Sometimes, this suspicious activity doesn't take place on the street itself; it's just around the corner within easy distance. In many cases, homeowners don't realize they've purchased a safety liability until it's too late. Short of staking out a potential neighborhood and witnessing shady characters or crimes outright, what can you do to ensure that you're purchasing a good investment in a safe and desirable neighborhood?

First, of course, the obvious: crime statistics, which are accessible to everyone. If you've ever rented an apartment in a large multifamily development, you may have spotted the neighborhood's crime statistics posted in a common area. When you purchase a home, however, it's up to you to track down those statistics. You can actually located neighborhood-specific data, although you'd be wise to research the surrounding area within a large radius. You can obtain local crime statistics through your police department or online; one of the best resources on the Internet is the official home page of the United States Census Bureau, accessible at www.census.gov.

The general performance of the local school district can, in many cases, be a tip-off for the quality of life (and thus, the crime rate) in your prospective new neighborhood. Don't depend solely on school information, but by all means, find out how the schools in the area stack up regionally. Are more schools planned for the city/town? If several more schools are either under construction or planned for construction, it's likely that families relocate here to take advantage of a quality educational system. Among the existing schools, how many extracurricular activities are available for students? And do those activities have a loyal participation? The more extracurricular activities offered by local schools, the less time students have to be bored - and possibly get into trouble.

The number, variety and upkeep of local amenities are another clue that will help you determine a neighborhood's quality. Do you spot several retailers with "Coming Soon" signs in front of new or existing buildings? What kind of retailers does the city or town offer? Are they of high quality? Does the area have at least one movie theater, bookstore, shopping mall, sports arena, community parks and other venues for entertainment? What about restaurants? Check with the city's economic development board, as well as its convention and visitors bureau (these organizations often have Web sites) to locate amenities in the area. Also research the city's economy in general terms. Are businesses relocating here in large numbers? What is the city's rate of job growth? Of unemployment? Is the portfolio of local businesses diverse, both in size and sector (including high-tech, retail, health care, hospitality and other varieties)? And speaking of hospitality, how many hotels are in the area? If tourism is a healthy segment of the local economy, this, too, is a signal that you're probably making a wise investment with the purchase of a home in the area.

Take a drive through not only the neighborhood you're considering, but also the surrounding streets. Are homes well-maintained? Are residents having their homes remodeled or otherwise enhanced? Are the streets well-lit at night? What is the percentage of ownership in your prospective neighborhood?

The higher the rate of ownership, the smarter the investment. Find out from a local Realtor the average number of days a home in your prospective neighborhood remains on the market. If homes are receiving multiple offers for full asking price, that's an excellent sign of things to come for your own investment. If, on the other hand, homes are languishing on the market, there must be some reason why, and it's not likely to be a good reason.

Does the community have a quality public transportation system? Are residents receptive to it? If the public transportation system is of excellent quality and it's used by a large percentage of residents, the effect on air quality is extremely positive. In addition, a good system of public transport means that people are quite content to live in the community you're considering - even if it means commuting into a downtown sector located elsewhere.

If you're unsure at any stage during this investigative process, find yourself an impartial ally - the local police department, a Realtor who can run "comps" for you on the street you're considering as well as its surrounding neighborhood, and possibly a home inspector who can supply you with more in-depth data concerning the neighborhood.

Taking on the role of sleuth - well before you sign on the dotted line -- is one of the best measures you can take for the sake of your future investment.

Published: October 4, 2000

Use of this article without permission is a violation of federal copyright laws.