Why Location and Only Location matters in Real Estate?
If being in the real estate industry was easy, well then everyone would be doing it!
One of the foremost parameters that define a good real estate project is its location. A home’s location determines a number of factors that can impact your family’s happiness, safety, comfort and financial future. Investing in the wrong location can be a very expensive mistake.
Here are few points that prove the relevance of location when buying real estate:-
- Quality of the Area:- An obvious point of interest is the area. Observe whether the area is neat and clean or littered with debris. Pay attention to whether the homes are well maintained or beginning to get a run-down look. Get a good overall picture in your mind about the street, the neighbourhood and the surrounding community.
- Amenities:- It is important that you have a list in terms of needs, interests, and preferences. Include factors that are important to you such as commute time, recreational activities, health care and shopping facilities. Rank these priorities in terms of importance. That way you will have a clearer idea of whether a location meets all or most of your needs.
- Crime Ridden Neighbourhood:- No one wants to live in dangerous community. People want to feel safe in their homes and will pay extra for it. A safe neighbourhood means people will feel free to walk around, be outdoors and interact with other neighbours.
- Schools:- Home buyers with children are concerned about their children’s education and often will pay more for a home that is located in a highly desirable area. They will do their home search based on location in general and good school in area, in particular.
- Proximity to Public Transport:- Most people do not want to endure long commutes to work, offices or the public transport. They prefer to be located close to emergency services and conveniences, so naturally homes in locations that shorten travel time are more desirable.
- Property Value:- Consider how popular the area is. Sometimes that popularity can spread outward surrounding neighbourhoods with an effect of rising prices and thus property value appreciates. On the other side, areas with low demand where homes are already at a premium price or areas where prices are stagnant may result in slow or no appreciation in value in the future.
- Long-term Value:- Despite your negotiating skills, you are probably going to pay the market value for the home that you buy. You need to think about ways you can add some value. If market conditions change and you need to sell, you should be sure that how you can regain your investment.
- Economic Benefits:- Get a sense of whether the economy is growing stable or stagnant. Look for a healthy mix of commercial, residential and business districts. This provides employment and attracts residents as well as adds to the tax base that can be used for community improvements.
- Eco-Friendly:- Check the community's environment to make sure that you avoid living near factories, traffic congested roads and polluted bodies of water. Check the neighbourhoods that holds activities such as tree planting and clean-up operations.
An important key to selling a real estate property is buying in a desirable location. If the location is not desirable, then selling itself becomes nearly impossible. Desirable qualities will always increase value assuming no major changes and undesirables have the opposite effect. The smart shopper will also seek out information about planned developments in the area to capitalize in the future or seize the day while getting good.
Author: Gunjan Johar | Real Estate Analyst & Home Decor Blogger