What is the most crucial aspect of real estate? Most real estate agents agree that the three most important factors when buying a home are location, location, and location. Believe it or not, the location of a home is the single most important factor to consider when looking for a new home. But what is it about the location that makes it so important in real estate? Keep reading to gain insight into why location matters in real estate.
Why location matters in real estate
It’s usually a good long-term investment to buy a property in a decent area. You may find a lovely property with all the room and facilities you require, but if it is in a less-than-desirable neighbourhood, you may have difficulty reselling it in the future. Furthermore, while almost everything else about a house may be changed, the location cannot. Moreover. a great location enjoys higher appreciation in value. What constitutes a good location, and why is it so important? When buying a property, there are five features to look for. If you can get all five, the house is likely to be a good investment.
Features of a good location
1. A safe neighbourhood
People want to reside in areas with little or no crime. They naturally want to feel safe in their houses and are willing to pay a premium for it. People will feel free to stroll around, be outside, and connect with their neighbours in a safe community.
2. Good schools
Even if you don’t have or plan to have school-aged children, being in a good school district is vital. Young families will constantly be purchasing their first or second house. They will do their home search based on location in general and good school districts in particular. The better the school district, the higher the values of the surrounding homes can be.
3. Amenities and transport options
One of the reasons why location is so important in real estate is that buyers often want and need close access to amenities and transportation options. This means relatively close proximity to restaurants, grocery stores, and entertainment. It could also mean a home situated near important roads and public transportation options, such as bus stops and train stations.
4. Future appreciation potential
When it comes to a property’s value and future appreciation potential, any real estate investor will tell you that location is key. What is the explanation for this? In many cases, a real estate market’s demand is dictated by its location. You can expect a home’s worth to increase if it’s in a desirable neighbourhood and location where people are moving. As the demand for a specific place grows, so will the value of that location.
5. The neighbours
You should spend a lot of time in a neighbourhood before buying a house there. Take a trip down the street and, if possible, introduce yourself to your neighbours. Spending time in a neighbourhood should give you a fair idea of who lives there. Aside from resale worth, it’s also a good idea to check out your neighbours for your own benefit.