Consider this scenario:-
I have to make a choice between an updated home in an older neighbourhood or a newer home in a more modern neighbourhood. The home in the older neighbourhood has almost everything I want and is much larger, but which makes the most sense as an investment?
If your goal is to buy a home for its resale value and the one you are thinking of buying in the older neighbourhood is at the upper end of values for that area, then it may not be the wisest choice.
If it is similar or lower in price to the others, then there should be no problem because pricing should be considered in relation to the locale and not compared to homes in other regions (for the most part).
Plus, is it a neighbourhood on the decline, or are others going to be fixing things up, too, so that it is a neighbourhood that is improving? It could turn out to be a very good deal as long as you don’t overpay because of the recent improvements.
Remember that you also buy a property for it’s value to you (as a home), and that is something else you should consider – which area would you and your family feel most comfortable in?