The pros are many, its an up-and-coming area that will eventually have all the attraction that White Plains has right now. The transformation in downtown White Plains is lifting all boats. Condos and coops are going up in value, not down. So - if you buy in downtown New Rochelle, you can catch the development "wave" before prices go sky high. (There are condos selling in WP for $3million + - an unheard of number 2 years ago.) Another analogy might be Harlem. Many bought before it was fashionable...now they are rich.
A couple of caveats. You may have heard one of your parent's say, "don't buy the best house on the block" - the same is true here. Buy something either at the lower end or middle....it's just safer. I kind of like the knickerbocker Lofts. Good Square footage, but in an area that is not transformed yet - so you get a lot for the money, but you have to live with industrial area while the transformation goes one around you.
The cons are mentioned above - you have to live with the ongoing transformation while it is happening. But it's not that bad - and you know what they say...no pain, no gain. Upward potential is mainly available in areas where some SACRIFICE is still required. Once there is no more sacrificing - the price goes waaaay up.
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