You'll notice that in this area Kingston Road is lined with motels, a lot of them serve as shelters for the homeless now since the 401 was built and the primary east-west highway has moved north of Hwy 2. This combined with the higher than usual amount of TCHC housing, and the fairly low land value compared with the area south and north of it results in West Hill. There are a lot of young people (14-19) in the area, something common in many parts of Scarborough but uncommon in other areas in the city. This area should see an interesting future as Kingston Rd will be narrowed from 6 to 4 lanes with the construction of the Malvern LRT. Keep an eye on the Pam Am games bid, due to the fact that a major facility is going to be located at the University of Toronto's Scarborough campus this line might be accelerated and your investment might appreciate faster than you might have expected.
I love Scarborough, it's demographics are unique to this city. However, if you're looking for cheap townhouses go to Liberty Village. Now that's an upcoming neighbourhood without the suburban feel. Don't get me wrong with how frequently the 86, and 116 run you can find yourself Downtown in an hour - but if you plan on having children or if you have children this isn't a neighbourhood you want to move to, at least on Galloway.
There was a gang war between Malvern and Galloway in the mid 00's, but that has long ended. There is still some resentment felt between some in their respected neighbourhoods. About 3 years ago I went to School in Guildwood (near Galloway) and lived in Malvern and encountered a situation where I was approached and asked if I was from Galloway in Malvern. Youth in these areas seem to keep note of faces, it's actually interesting the way networking works in this way. If you aren't young and aren't a male you shouldn't have any trouble at all.
That's my two cents having lived in the area for an extended period. There are a lot of nice people, I can't wait to see what will happen when the LRT is finally built.
It has been improving consistently over the last decade with the reconstruction of Morningside Mall and other incentives, this area definitely has a bright future.