Real estate investment can be your next gold mine, but here’s the catch: location makes or breaks your investment. When purchasing a property, it might be tempting to just evaluate the price, interiors, size, and overall aesthetics. However, there remains only one constant thing in your property investment: its location.
In this article, we’ll list down the top five consideration factors in assessing the value of a property’s location. After all, location plays a critical role in the appreciation value of your investment over time.
1. Proximity to Business Districts
First on the list: proximity. The appreciation value tends to be higher for properties located in central business districts where schools, offices, restaurants, and shopping malls are located. This is the price that home dwellers are willing to pay in exchange for convenience.
Apart from convenience, proximity also increases your savings. Cutting down on transportation costs, and owning a property nearby your places of interest will definitely help you save more. More importantly, in case you decide to have your property rented eventually, houses in the middle of business districts tend to attract more tenants, making the property lucrative for tenants or even future buyers.
When buying your next home, it is essential to check the location’s safety. For starters, you can easily search crime rates, incident reports, and vulnerability to natural disasters in different areas (even specific towns and neighbourhoods) online. Apart from official reports, you can also check online forums and even discussion threads in homeowners’ social media groups. This paints you a vivid picture of what to expect in case there are reports of previous thefts or burglaries in the area. After all, you wouldn’t want to risk your safety and security when buying a house.
Your future neighbours play an important role in attaining a satisfactory living conditions. This might be a matter of personal preference, but it is important to define a list of deal-breakers early on. For instance, your ideal property might be located next to a pub or might be near a college town. If you dislike the possibility of hearing noises late at night, this might not be a wise investment choice for you. Remember, your property’s resale value also relies on personal preferences like this.
Pro-tip: It would be best to visit the property on most random days. Spend a day or two observing the neighbourhood. Best if you do this on a random weekday and even during the weekends to evaluate its livability during its quiet hours and busiest times. This is also a great step forward in building your future social circle in case you’ve decided to acquire the property.
4. Local Amenities
Whether you plan on living alone or bringing your family, evaluating local amenities is always important. When investing in a property, check whether there are nearby parks, playgrounds, dry cleaners, and convenience stores. Best if these amenities can be reached through walking, at most a 5-10 minute drive from your property.
This is especially an important factor when you have children. Find properties with family-friendly amenities as these are important in developing their social skills. In the digital age, it will always be best to expose them to real-life playmates — immersing them in a vibrant life beyond their iPad screens.
5. Commercial Development Plan
As an investor, you should always carefully examine your property’s appreciation value in the next five or ten years. Know the commercial development plan for your property’s location, including but not limited to civic infrastructure plans such as highways, hospitals, and even plans for building new schools. This potentially improves your investment value in the long run, especially when you have future reselling plans.
To know the commercial development plan, you can directly ask your agent or the property developer. You can also source for government development plans in specific states, and even research the upcoming businesses to rise in the area.
All in all, investing in real estate requires extensive research. For starters, it will always be best to check your dream property’s location before investing further time in assessing other critical factors. Remember, location makes or breaks your property investment. Following the right techniques in scoring the best location, you will be able to narrow your real estate investment options, retaining only the best ones with the highest appreciation value.
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