"Location, location, location" is a common mantra in real estate. And it's good advice—except for one thing: Most people have no idea what it means.
Location is key to valuable real estate.
Most people decide to buy a property based on how much they like the house or apartment, but you are also buying a plot of land when you buy a property. The house currently standing on that land can be renovated or remodeled, but you can't change where the home is situated. This fact is seen most clearly in suburban homes, where the limits of a property are marked out.
However, even if you buy an apartment in a city, you invest in a particular location. A city block can be a "good" or "bad" investment in just the same way as the neighborhood of a house. This means that location is often the single most important driving force behind the value of a property. It's a simple case of supply and demand: Housing supply in great locations is limited by the number of homes in that location.
People are usually looking for the real estates which are well managed and sounds appealing to them. However, one must focus on the site of the property more, instead of its appearance. An old ugly looking property at a prime location can be availed at a reasonable price and renovated or reconstructed to generate high returns.
A "good" location for homebuyers usually has transport links, well-ranked schools, and community involvement.
The next important factor to recognize is that a "good" location or a "bad" location won't stay that way forever. Cities, towns, and even suburban communities are constantly changing, and neighborhoods can transition from less desirable to one considered "up and coming" within a few years. For example, if a major employer has just opened near an affordable neighborhood, it's often worth buying in that location.
Location isn't entirely subjective—in fact, it's based on a fairly static set of criteria. When you set out to shop for a new home, make sure the neighborhood isn't just desirable to you but has objective qualities—such as attractive amenities, good schools—that will help ensure your investment appreciates in value over time.
Comentarios