“Location, location, location” is a common adage in the world of real estate. It’s generally a good piece of advice. After all, where a property is located is indeed very important. However, there’s more to it than just finding a good place and calling it a day. There are layers to what makes a location good and how you should factor “location” when purchasing a property.
This article will discuss what location truly means when it comes to real estate and why you should carefully consider it when making real estate decisions.
Real Estate Value Is Proportionate to Location and Your Preference
Real estate value is almost always proportionate to where it is located. The factors considered will be laid out below, but think about which one you would rather purchase.
- Property close to the city centre
- Affordable property
Whatever you choose, you have reasons for it. And it’s perfectly fine that way because what you value is always what takes importance. Even if a property is expensive on paper, if the accessibility, amenities, and proximity requirements are met, then it will pay itself in the long run. Alternatively, if your focus is on affordable prices because you have most of what you need already, then that takes priority as well. Value is relative to location, but how you perceive the value of a location will always be up to your preference.
Accessibility Is King
A place that’s hard to get to is barely a good location. What can make or break a property’s value is often how accessible it is. How accessible it is to services and amenities, to establishments like businesses and schools, and other similar institutions. The extra money you’ll be paying on a mortgage might be worth it if it means less money on the commute and other services like a reliable laundromat (which means buying a washing machine isn’t a high priority) or restaurants.
Or it can also go the other way around: if you don’t particularly mind driving or has a job that offers shuttle service, it’s not a high priority. Consider what you need, be it closer to the city centre (higher price) or a lower down payment (far from the city).
High-traffic Locations Tend to Have Lowered Value
As mentioned before, how you can get to your property (or accessibility) matters a lot. But just as important is the traffic involved in getting there. A location might be a high-traffic location, especially ones close to hospitals, schools, and fire stations. This poses two situations; proximity to such services can make it convenient if you have kids going to school or is taking care of someone with compromised health.
The flip side matters as well. If your priority is to be able to travel unhindered (perhaps due to a job) or would really rather prefer quiet neighbourhoods, then a high-traffic location might not be for you. Factor in what takes priority- that’s where the true value lies.
If It Looks Good, It Must Be Good
A place that looks good is a place that is good to be. Appearances matter a lot in real estate- you don’t want to live in a place whose appearance you don’t appreciate since you’ll be seeing it every day. Yet looks can be deceiving too.
When going over properties, find out what the purpose behind the beauty is. A beautiful-looking park would be next to useless if it’s off-limits people. Go for communities like Peppercorn Hill, where there’s a considerable size of parkland dedicated to recreation. There has to be a purpose to what looks good. Otherwise, you’ll grow tired of it (or it’s a front to gather more buyers).
What Are the Possibilities for Future Developments?
And finally, a commonly overlooked aspect of “value” when it comes to real estate is future development. A piece of land might not be the hottest property right now, but things can be different in five years. Looking at the current social and economic trends should be part of every home buyer or real estate agent’s agenda.
The social changes often happening inevitably affect people’s preferences for locations, changing the demand (and supply) for real estate. Think about developing locations: many agents often tout a property in a growing business district as something that will increase in value in the next few years. Often it is true, but if you have very little business in that district, then it’s of little importance (unless you’re buying with the intent to re-sell).
A property’s monetary value is often decided by location. But ultimately, its value towards you is the most important. Consider what you want first, and it’ll all be worth it.