Location, Location, Location
The term location is used to identify a point or an area on the earth surface or a place of settlement, residence or activity.
The phrase ‘’location, location, location’’ is widely used in the real estate investing world and not unfairly. In fact, it might be the single most important aspect about real estate investing. Price is nice, but location is better; it dictates everything else.
6 reasons why location is important:
- Location is a constant,
- the supply and demand,
- how desirable a property will be,
- the optimal rental strategy,
The choice of location regarding a property depends on different factors and criteria. These factors usually depend on the industry and the nature of the enterprise. Depending on the company and its operations, the decisions regarding location might depend 100% from specific location parameters, whilst on some other cases the decisions might not be affected by any restrictions, however they have to oblige to certain terms which the investors think are critical. Factors change over time. For instance, in recent years, factors which had previously been neglected, such as freedom from pollution, quality of life, etc. are now critical.
Why is location important when buying a house?
In a real estate purchase the importance of location is being overestimated. However, location is indeed the most important factor when investing in real estate since it translates into profitability. It creates the desire to purchase, which in turn (the desire) creates demand and demand creates a rise in price.
Location matters! Even the location inside your neighborhood will have huge impact on your home’s esteem and value. When purchasing on the low end of the neighborhood’s price range the other homes in your neighborhood will bring your value up. Also, people love water. Thus, the idea of buying a property near water is very attractive.
When the time comes a buyer is attempting to recognize the location of the property, she/he is interested in, she/he is prepared to pay up a great sum of saved capital. Thus, it is crucial to choose the correct location which makes the real estate purchase ‘tick’.
Some of the common variables for making a real estate purchase ‘tick’ are:
- The status of the neighborhood
- Proximity to facilities and amenities
- Access to water
- Access to major highways
Without a doubt price and location are both important factors. Location eventually dictates everything else about the property. In other words, if a property is situated at a good area and prime locality it will behest a better selling price.
Have in mind that the most important factors when buying a home are location, location, location. When deciding to buy your house you must keep in mind time. Meaning; are there going to be any major changes to the area and how is locality expected to evolve over period.
To conclude, any purchase of home should be backed by a well-thought-of plan in the terms of location.