Prime location for real estate investment, Best realtor advice, Property selling advice

What Makes A Location Prime For Real Estate Investment

5 December 2024

Prime location for real estate investment

If you are looking for a new home to buy or rent, or if you are an investor looking for an ideal investment property, there are some things that you must remember. One of the most important things to consider while looking for a house is its location.

Here, we have mentioned some of the best tips to consider when looking for a home with a prime location.

Access to Public Freeways or Transit

“The value of a home will be minimized in major cities the further you get from bus systems, subway lines, or other mass transit systems. A home has a prime location when it is near public transportation and with easy access. There are few locations across the country that require cars to commute. When a location is close to major freeways, it makes it prime in these areas. If there is an added commute time to get to a freeway, it will decrease property value.” Dan Beech, Financial advisor at Simple Wealth

Centrality

“Where you choose to live in town or city will doubtlessly influence how much you pay for your home. Land is a fixed item, so cities that are highly developed and do not have much room for further growth tend to have higher prices than cities that have too much room to expand. These communities also have many empty areas and homes that have no hope left.

When extensive cities encounter a population withdrawal, it is the remote areas that usually suffer the most extreme declines in property values. This highlights how location influences the core economic principle of supply and demand.” Benjamin Foster, Senior Manager at UK Expat Mortgage

Proximity to Noisy Landmarks

A central factor that makes a home situated in a bad location is its proximity to prominent noisy landmarks. A few of the noisy places in your neighborhood may include the following.

Schools

“It may be convenient to live near a school if you have children. However, you will find traffic and noise that may cause problems for renters or owners. The traffic from parents dropping off their kids and the noise of buses can be annoying. Moreover, the loud noises from kids yelling and playing might be undesirable for some residents.” Daniel Cabrera, Owner and Founder of Sell My House Fast SA TX

Airports

If you are a jet setter, you may find it fun to live close to an airport. However, you must keep in mind the noise factor while living close to an airport. At airports, jet engines operate for around 18 hours a day. There is no need to say that things can get noisy.

Hospital

Finding a location close to a hospital can be desirable for safety reasons. But, you must also think of the noise associated with it. When you have a home close to a hospital, it means you will be hearing lots of sirens throughout the day and even at night.

Fire Station

Similar to a hospital, a fire station will also be noisy with sirens. Make sure to consider this while buying a house near a fire station.

Neighborhood

Prime location for real estate investment

The neighborhoods that attract you will mainly be a matter of your personal choice. But, a truly good neighborhood will have some critical factors in common. For instance, it will include appearance, amenities, and accessibility. Your neighborhood may also determine the size of the lot your house is built on.

Considering accessibility, you should look for a neighborhood that is near to city’s major transit routes. People spend most of their time commuting to and from work. Hence, it is important to have easy access to public transportation and roads. Quality landscaping, nearby parks, community spaces, and shady trees are often desirable.

Development

“It is not only the existing amenities that matter but also the future ones. For instance, plans for new schools, public transportation, hospitals, or other civic infrastructure. These can dramatically increase property values in the area.

Moreover, commercial development can also enhance property values. When you are looking for a home, try finding out whether any new commercial, residential, or public developments are planned. Also, consider how these additions can influence the desirability of the surrounding areas.” John Smith, Founder at Sparkaven

Lot Location

You should also consider where the house is located. It means you should consider if the house you want to buy is very close to a highway or right on a busy road. These areas will probably have houses at lower rates but it will also be more complex to sell them later. The same may happen for homes that are next to or back onto a commercial property. These may include gas stations and grocery stores.

Moreover, there may be houses on the streets that get a strange amount of parking traffic. These may be the ones near community centers or large churches. In contrast, a house with a beautiful view or near a beach will be more likely to be valuable.

The Home You Purchase

Prime location for real estate investment

“There is one aspect of house hunting that mostly surprises people. Let’s consider you have narrowed your options to two homes that are both amazing and in a great neighborhood. One demands some updates and repairs but includes a huge lot. The other one is in perfect condition but stands on a lot of half the size of a renovation project. The prices of the two houses are the same. Which one will you choose? In many cases, the house that demands repairs will be a better investment.“ John Gill, Operations Director at Easy Concrete Supply

Why? Your home is a depreciating asset. While the lot will maintain its value relative to the house. If you even bulldozed both houses, the larger lot will sell at a higher price. So, if you have a choice, go for the better-shaped, better-situated, or bigger lot over a nice house. You can always update a less attractive house but can never change the lot.

Conclusion

Location is not completely subjective. When you go looking for a new house, make sure that the neighborhood is not just desirable but also has objective qualities. These may include good schools, attractive amenities, easy access to essentials, and more. It will help to ensure that your investment appreciates the house over time.

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