Real Estate Investment: The Importance Of A Good Location
There are many things to consider when investing in real-estate. The cost is a biggie, but then there are the other factors to consider, including the type of property you want to invest in, and what you want to do with the property when you have bought it. One factor many investors overlook is the location, but they do this at their peril. Make a wrong decision, and they may pay the consequences later. While the house can be changed and maintained, the location can’t, so a thorough consideration needs to be made before money is handed over to a property.
When choosing a location for your real-estate property investment, you need to consider supply and demand. By scouting the location, you can determine demand by the number of empty properties and ‘for sale’ signs. By using the resources available to you, it’s possible to decide whether the location is a viable investment, or not. There may be factors that attract or deter renters and home buyers, and you need to consider these when choosing your real-estate property. For example, consider the following:
Local amenities – What attractions are in the local area? From shopping malls to entertainment centers, there needs to be an incentive for people to move into the area. If there is nothing at walking distance, there at least needs to be easy access to amenities by road or train.
Crime rates – We can’t avoid crime, but there are some locations where the crime rate is higher than others. For anybody concerned about their safety – which is most of us- living in an area where the risk of burglary or violence is commonplace is not an attractive proposition. If you are looking to rent out your property, you will have to lower the rental price to attract tenants, and you may not get the most desirable people taking up residence.
Natural beauty – Many people are keen to avoid the rat race, so you may consider choosing real estate in a place of natural beauty, such as the countryside, rather than a concrete town or city. However, an urban setting may still be attractive to home buyers, provided there are local patches of natural beauty, such as a parkland or conservation centers nearby.
The daily commute
If you choose a remote location for your property, at least ensure transport options are accessible for those needing to commute to work. However, even in a well-populated town or city, not everybody is keen on walking or cycling to and from work, so roadways, bus routes, and train lines are something to look out for.
Schools – If you are looking to attract young families to your property, there needs to be accessible to local schools. You might also target the student population if there are colleges or universities nearby. Particularly considering millennials, who take up most of the home buying market today, this is one area that shouldn’t be overlooked.
If you are looking to make an inroad into real-estate investment, you should never forget location. When looking at the property market, the factors mentioned above will affect house sales and the value of a property. You will lose money if you invest in the wrong location, so commit to research, speak to local real-estate agents and keep your eye on the property market online to help you make the right choices.