Why Location In Real Estate Is Important
You might have wondered why it seems like location in real estate is important. It is always talked about in real estate investments and purchases.
The reason is that the location of a property is what translates into profitability for the investment. Location, primarily, creates the desire for purchase and the desire, in turn, creates demand which causes a rise in price.
Some people also say location is the number one rule in real estate. This is because a property can increase or decrease in value due to location.
The Importance of Location
When you buy the right home in the wrong location in real estate, you cannot change the location. You can change the structure, remodel it or alter the home’s layout but, ordinarily, you cannot move it. It’s attached to the land. This is why it is best to buy or build a house in the best location possible.
Supply and demand are two factors that will always play a role in real estate appreciation. Housing supply in great locations is limited to the number of homes in that location. Good Location in real estate creates desirability, desirability creates demand, and demand raises real estate prices.
Factors that should be considered when looking for a great location to buy real estate
Here are some of the things to consider when looking for a great location to buy real estate. For residential properties you would need to look at;
Status of the neighborhood, Proximity to facilities and amenities, Access to water and Safety of location
The status and appearance of the neighborhood is very important. Proper buildings, quality landscaping, and nearby parks or community spaces tend to be desirable. You can also judge the popularity of the neighborhood based on how long homes in that area stay on the market; if turnover is quick, you’re not the only one who thinks this is a desirable place to live.
A great neighborhood should also be close to basic facilities and important amenities such as supermarkets, shops, and restaurants. Most people like to frequent places that are convenient. If you have to drive a great distance to get to anything, then the location is less attractive.
Schools are another important amenity. Even if you don’t have kids, if you want to sell your home in the future, many buyers will be on the lookout for good schools. The quality of the schools and the distance from the house are both important factors to consider when choosing location.
Good water supply matters a great deal when choosing location for real estate as well. A property without clean water supply in its environs would not be desirable.
Finally, don’t forget safety of location. A location that has a low crime rate and is an inviting and safe place to be outdoors and commune with neighbors is the type of place where most people want to live.
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For commercial properties, factors to be looked at include;
Closeness to Transport Hubs
When picking out the best location for your business operations, closeness to transport links is a must. Choosing a place where majority of your staff don’t have a commute too long would help you attract the best workforce. You also need to consider how easy it is for clients to find you. Is there adequate parking on site? Can clients and staff easily get there by public transport? These are just some questions to answer when it comes to considering the location of your business.
Surrounding businesses
Another important factor to consider when looking at location in real estate commercially is surrounding businesses. One thing that can affect your location of choice is the type of businesses that are near the building.
For example, if you own a food business then choosing locations where companies are located will attract a better type of clientele because they can always come in for lunch breaks. You may also have to avoid locating your business in areas where there are established businesses that are in competition with you.
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