Homes will be snapped up almost immediately when a real estate boom hits. Buying in the best locations now may be good while it lasts, but when the party ends, only the most discerning homebuyers will retain the most valuable properties that also depreciate at a much slower rate. The location of a home plays a significant role in a home’s value.
Real estate mantra: “location, location, location”. However, most people don’t understand what it means, so it’s not good advice.
Key Takeaways
- Real estate is valuable when it is located in a good location. A home in a city with a limited expansion potential is generally more valuable than one in a city with plenty of space.
- A neighborhood’s appearance, amenities, and accessibility should be considered along with its development plans.
- Some lots are less desirable for resale due to their proximity to busy highways and community centers.
What is real estate location so imperative in investment?
Let’s take a closer look at how this particular saying got started – that location, location, location play such a prominent role when it comes to buying a home.
When we look at what we are buying when we purchase real estate, the reason becomes clear. Even though most people buy a house or apartment because they like it, they are also purchasing land when they purchase a property. There is the possibility of renovating, remodeling or even demolishing the present house and building condos there. The location of the land you own is the only thing you cannot change.
Suburban homes demonstrate this most clearly, where boundaries are marked out. Although you are investing in a particular location even if you buy a house in a city. In the same way that the neighborhood of a house can be a “good” or “bad” investment, a city block can be as well.
Therefore, the value of a property is often determined by its location alone. There is a simple supply and demand relationship: if there are too many homes in a location, housing supply drops.
Considering some factors of a first-class location:
- Many factors determine a home’s value, of course, including a good location. All of these factors may prevent you from buying a home based on your personal preferences and needs. There’s nothing wrong with that. Homeownership is a priceless investment. However, keep the following considerations in mind when searching for a new property.
- It’s mostly a matter of personal preference which neighborhoods appeal to you. In addition to these factors, a truly great neighborhood will have three other common elements: accessibility, appearance, and amenities. A house’s size can also be determined by its location within your neighborhood.
- If you’re looking for an accessible neighborhood, consider locating it near transit routes and that have multiple points of entry. It is an important part of many people’s day to commute to and from work, so a house that is close to public transportation and roads will be more desirable than one that is isolated and only accessible by one route.
- As well as appearance, the neighborhood should also be considered. A nearby park or community space, as well as large trees, tend to be desirable. Also, you can judge the neighborhood’s popularity by how long it takes for homes in that area to sell; if turnover is quick, you aren’t the only one interested in living there.
- In addition to grocery stores, shops, and restaurants, a great neighborhood should also include other amenities. Convenient locations are preferred by most people. You will likely find that your house is less appealing if you must travel a long distance to reach anything.
- Other important amenities include schools. Many buyers will likely be looking for good schools even if you don’t have kids. The quality of the schools in your area and their location are also important factors. The future amenities are just as important as the current ones. School construction, hospital construction, public transportation, and other civic infrastructure improvements can significantly affect property values.
- Economic development can also contribute to increased property values. You may want to check if there are plans for new public, commercial, or residential developments in the surrounding areas when searching for a home. Like I recently heard of DLF Midtown Moti Nagar, New Delhi that is an eye-catching residential property planned that will also enhance the location importance.
- Traffic and noise from nearby fire stations, hospitals, schools, or community centers can lower the value of a property. Last but not least, remember safety. People like to live in neighborhoods with a low crime rate and places that are welcoming and safe for outdoor activities and socializing with neighbors.
- There is a chance you can get a cheaper price if the house is close to a highway or right on a busy street, but it will also be more difficult to sell. In the same way, houses near or backing onto a commercial building, such as a grocery store or gas station, or in neighborhoods where parking is scarce or there are a lot of parked cars, such as those near large churches or community centers, may be susceptible to damage.
Also a house that has a stunning view or is close to the water will likely be more valuable to buyers and sellers in the future with the location. If you want to find your home in the best location so it is better while conducting your search, you keep these certain things in mind. Location can seriously influence your investment.