Why Is Location So Important When Investing In Real Estate?
Investing in real estate? It has off late become a rage all over the globe. This is more so because of the fact that the value of land or property and estates never depreciate. Unlike other possessions of yours, the value of real estates and properties climb up the value ladder as time passes. But while investing you must keep in mind some of the rules that will help you gain a bigger profit or neat monetary advantage from the property or estate you are investing your money in. Otherwise, like so many of naive and amateur investors, you will be left shelling out expenses instead of bringing home a bagful.
The first and the most important key to a wise real estate investment is the ‘location’. Ignoring this vital point almost always makes a negative impact on the success of the real estate investment plans.
We shall now list some of the points that you should be wary about while selecting the real estate you plan to invest in. all of these are concerned with the importance and the role that location might play in elevating or pushing down the value of the real estate investment you are taking a nose-dive in:
Topographic value – Buying land or an estate is always made keeping future or immediate profits in mind. Therefore, it is obvious that investments in any and every property or real estate available is pointless. Desert land, marshes and forests are repulsive to profits from real estate investments, whereas farmlands might be a major source of inflow of money during your possession or after the estate’s sale. Many real estate investors fall into the trap of agents and brokers who misguide for their own profit. Next time you invest conduct your own research on the property before going through with the investment process.
The ‘Hood’ – The neighborhood is as important as the real estate property you are investing in as well. The residents, the standard of living and the potential expansion or elevation of the quality of the neighborhood ambiance is something that has to be kept in mind while investing in real estates. This is because a neighborhood that will or has the potential to expand and aggravate stands in good stead to provide better returns than the stagnant neighborhoods.
Degree of Urbanization – Choosing a quiet and secluded location for your home may be recommended, but for real estate investments, it is a vehement no-no. Investments in places like LA or California will give you better returns than some remote locations.
Ease of Access – Real estate properties that have efficient access ways to the city or your workplace will be higher on the monetary value scale. Also real estates that have railroads, subways and speedways in-construction around will also give you better returns in the long term. After all, saving gas (prices of which have already shot through the roof) and time will always be a priority for the client you will be selling or leasing the property to.
Location has always been, and will always be a top priority factor in deciding the value of a real estate investment. Hence, always be thorough on the research and pre-analysis part before investing in the real estate or property at hand.
——————
Jason Sands is an experienced investor in real estate over many years. Some recommendations for investing include Kincumber land for sale on the Central Coast of Australia and Port Stephens retirement homes.
