Real estate might be your goose laying golden eggs for you month after month or your home sweet home, either way, location of the property is the key. Importance of location in real estate purchase must never be undermined. Location of a property translates into profitability for the investment. The fact is that when we decide to invest in a property, we are ready to put in a good amount of our savings or capital. So, it become essential that we make the right move.
Whether we buy a residential or a commercial property, there are some factors we must consider:
Connectivity
When we are the end users of the property we buy, we definitely look at transportation options. The building must be in close proximity to the major junctions. This removes major conveyance hurdles and ensures we commute easily. However, even when we buy a property with the idea of renting it, we must check what a tenant would look for. Accessibility and ease of transportation is the top need for everyone. A house or office that offers this facility will always be easy to rent, lease and even sell in future.
Amenities
We would always want to be in a place that allows us to live a comfortable life. The basic needs of grocery and medicines become a deciding factor when we buy a property. In fact, close proximity to amenities will typically improve a home’s value. With a fast-paced life that we all live, we want to live close to restaurants, grocery stores, dry cleaners, shopping and entertainment places. A house that is priced less might look attractive only till it’s visited, when we look at residing there, we will need to take care of fulfilling our daily needs.
Neighborhood
The appearance of the neighbourhood is also important. Large trees, quality landscaping, and nearby parks or community spaces tend to be desirable. You can also judge the popularity of the neighbourhood based on how long homes in that area stay on the market. Even in case of workplace, today, we all desire to work in buildings that offer us unobstructed views of nature. While buying properties in distant locations or underdeveloped areas, we might also overlook the factor of security.
Development
It is always a good idea to invest in those areas of the city that are upcoming because it is not just the present amenities that matter, but future ones as well. Plans for new schools, hospitals, public transportation, parks, sports centres, shopping malls and other civic infrastructure can greatly improve property values in the area. Commercial development can also improve property values. When you’re shopping for a home, try to find out whether any new public, commercial, or residential developments are planned and consider how these additions might affect the desirability of the surrounding areas.
Potential for Appreciation
We always look forward to appreciation on our property whether we buy it for utility, rent, lease or even for estate planning. The real estate market is not static and is characterised by ups and downs. It is, however, important to note that location of a property dictates the desire to buy it. This desire creates demand and in turn gives rise to the prices. Supply and demand are factors that will always play a crucial part in real estate pricing. Areas that are seen as undesirable now will likely be up-and-coming in the coming few years.
Real estate is the only solid and indestructible form of investment. It is also true that it takes away a major part of our capital, hence, making the right real estate decisions becomes imperative. We can change the way our house looks, we can change our office layout, we can make any changes to the interior and exterior of our property. But the one thing that we cannot change is the location of our property.
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