Why Location Is So Important for Investing in Real Estate
Buying a home is a major investment. Keeping in mind the high price of real estate these days, and considering the price of homes, investment in real estate is a major undertaking. While there are many factors to consider before buying a home, the importance of the proper location cannot be understated.
Most features about a property can be changed or updated, like its layout, yard, kitchen, and so on, but the location is the one thing that you cannot change. Therefore, if you are planning on investing in real estate, it is important to choose a property that is already in a good location.
Upkeep Media Inc. shares a few reasons why location is important when investing in real estate:
Many people make the mistake of buying a property without taking into consideration where they work. This may mean spending many hours in the car or having a long commute every day.
Sometimes, you may fall in love with a property so much that distance becomes unimportant, but for most people, it is generally recommended that they buy a property that is not too far from work.
Even if it is a property you intend to rent out, it is still important to consider its location, and whether its close to the downtown area or if it’s a tourist destination, it should be close to all major attractions, and other factors.
Whenever you want to invest in real estate, you should always consider a location where there is public transportation easily available. Weather in North America can be unpredictable during winter, and if one does not have reliable transport or if your car suddenly breaks down, the only other way to get to work or school or anywhere for that matter is through public transport
For those who have children or are planning to start a family, the presence of a school nearby is vital. Buying property that is not in a good school area is generally not a sound idea.
If you intend to live there, and if you have kids, you will have to commute to school. If you plan to rent this property out, good tenants will want to be near good schools.
You also should make sure that the school is reputable, that the pupils excel academically and it is an overall good place for learning. A good location will generally be a good school area.
Also, of great importance when buying real estate is the presence of a shopping center. It doesn’t have to be a big, fancy mall but most people prefer to live in a location where major grocery stores and superstores are nearby.
If not, one may have to travel far distances for shopping, even for small items. Other things to consider is the presence of good restaurants, a post office, etc.
5. Quality of neighborhood
Before buying any property, it is vital to drive or walk around the neighborhood not once, but several times. You want to ensure that the place is safe and that the other neighbors are nice and friendly.
The last thing you want is to buy real estate in a neighborhood that frequented by drug pushers, or where there are thefts, gangs, etc. In addition, you also want to ensure that the other neighbors try to keep their homes tidy because it can also affect the price of your home.
Finally, you also want to know how long the other residents have been living in the area as this can give you an idea about the stability and popularity of the place.
While living near major city roads has some benefits, you should not buy a property that is right within the direct vicinity of major routes. The reason is that traffic and noise can be quite bothersome and can disrupt your everyday life.
Plus, the pollution from the cars will definitely impact your home. That is why most people avoid living in areas that are too commercial as there is usually too much hustle and bustle.
7. Future Prospects
When considering the location of a property, you also need to consider the future. What will happen to the area in 5-10 years? While growth and development are always good, you should have a certain idea as to where this development is headed.
Will there be more bus routes/subway stations or malls in the neighborhood? Or will there be more commercialization? Different people have different priorities, but you should always make sure that you buy real estate in a location that is in line with your long-term goals.
Also, the resale value of the property is very important. Make sure you are aware of whether real estate in that particular area sells easily and at good prices, or is it difficult to buy good buyers?
Location is extremely important when buying real estate. Always discuss different options with your real estate agent. Consider all your options, and make sure you do your research before you make any decision.