When purchasing a home, the most crucial factor to consider is location.
Too often, I hear individuals discussing making judgments based on the home itself rather than the location, which is a mistake.
What is it about the location that makes it so important in real estate investing?
Any home’s condition and price can be altered. You can even adjust the house’s size. The one thing you can’t change is the location of your house. A fantastic location can transform an entire neighborhood in an instant.
Supply and demand are two factors that will always play a role in the value of real estate. Housing supply in desirable areas is limited by the amount of available properties.
The location generates desirability, and desirability generates demand, which enhances real estate prices.
Here are some of the things to consider when looking for a great location to buy real estate:
1. Safe/Best Neighborhood?
Anyone who is unfamiliar with the real estate industry will advise you to buy in a good/safe neighborhood. Guess what? Neighborhoods, like everything else, change.
Don’t buy in a good or bad area; rather, buy in a neighborhood with a bright future. Do your study on communities as well, but keep in mind that most of the greatest neighborhoods will be more expensive investments. You want to invest in an area that is on the edge of becoming the ‘next’ best.
Many Real Estate Agents will encourage you to “purchase in a safe neighborhood,” which makes sense, but it ignores the fundamentals of real estate buying. Just because the neighborhood is safe now does not guarantee that it will be safe in five years. This is what I mean by “reverse-engineering the future of the location in which you are purchasing a property.”
Alternatively, just because the neighborhood is unsafe now does not imply that it will be unsafe in five years.
What makes the location so essential is that you cannot change it; similarly, you cannot change the school district in which your home is located (though the city can). Making schools a critical component of your home’s location, especially because many millennials are buying a home to raise a family and desire a good school district.
Schools may perhaps be the most essential feature in an area, particularly when reverse engineering a neighborhood. Is there a proposal to build brand new schools in that area? Are the schools there well-regarded?
These are the kinds of questions you should be asking yourself, because many individuals will not consider buying a home in an area with poor school systems.
For many home purchasers, easy commutes to work are the frosting on the cake.
Whether driving a car, biking, taking public transportation, or walking, commute time is an important consideration when choosing a location.
4. Local Amenities
Local amenities have a direct impact on the area’s real estate pricing.
Grocery shops, restaurants, shopping, and entertainment are among the top features that consumers look for when purchasing a property.
Buyers like these amenities to be within a 5- to 10-minute drive. If the location of the home you’re purchasing is within a few miles of most of these amenities, it will assist increase the value of your property.
5. If you want to take anything away from this article, note this:
The most important factor when buying a property is “LOCATION”
It is critical to remember that the locals are an invaluable source of information. Mentioning to someone in a local coffee shop that you are seeking to buy in the neighborhood will reveal that people are eager to offer their knowledge and ideas.
There is no substitute for research once you’ve narrowed down your property or location choice.
Scheduling viewings with a few local real estate brokers can be beneficial. They will be able to give you advice on the most attractive spots in the area because they are industry pros. Of course, they will claim that their properties are all in wonderful locations, so take what they say with a grain of salt.
Osmond Properties is here to always take up your real estate enquiries and to connect you to your dream home!