The real value of location in real estate investing

Real estate is a booming market, even with the COVID-19 pandemic. Depending on the market situation, buyers will clamor for any property. However, what happens when the party is over, and the buyers are looking to make a sober and informed choice? There are several critical factors for you to keep in mind when you are looking to invest in real estate.

One such factor that every real estate agent swears by is the location. At face value, the importance of location is easy to understand. A posh area with well-serviced roads, schools, malls, and other civic amenities will demand a premium rate. But, how to guess what the location will look like in 10-years’ time? It would be best to consider the accessibility, appearance, neighborhood, and other vital aspects before making a choice.

So, what are the factors to consider when choosing the right location for your real estate investment?

Central location

The land is a finite commodity, and as land decreases, the prices soar. Prices are high for the premium areas of a city or a town. Keep in mind the city/town’s development levels when aiming for a real estate opportunity. It is vital to understand that areas with high development or areas with a high chance of future growth are the locations that will command the premium prices.

The neighborhood

While the neighborhood aspect might be a personal choice, there are still several factors for you to consider. Accessibility, appearance, and amenities are the 3-major aspects you are looking for. You are looking for a location near all the major transit routes into and out of the city.

The neighborhood’s appearance is also vital since trees, parks, and landscaping make a location desirable. Lastly, there should be plenty of available amenities, including grocery stores, shops, restaurants, and schools. It would be best if you also enquired about the safety and issues of the theft/burglaries and break-ins before finalizing a location for investment.

Location of the lot

Once you have selected the neighborhood, it is time to decide on the actual house’s location. There are a few things to keep in mind regarding the site of the lot. These include proximity to the main road depending on your preference, commercial property centers, or properties close to the grocery stores, gas stations or churches, and hospitals.

The house and appearance

The final bit of consideration is about the house itself, and you need to take stock of your options before choosing the property. You might face the choice between a huge property but requiring maintenance with that of a maintained property but half the former’s size. How to decide in such a scenario? If the prices are comparable between the two properties, then going for the larger property that will require maintenance is the best idea. With the maintenance work and certain value-additions, you will fetch a far greater price when deciding to sell the property.

Location isn’t subjective, and there are underlying criteria that should satisfy the choice of a site. Make sure you are doing this by the book – all the best!