There are lots a potential investor has to consider regarding property investment. Still, geography is the primary consideration. To many people, the location of a property doesnt seem as important as the resale value or the growth potential. The reality is its just as if not more important as it affects the house as a whole. Sorry to be the bearer of bad news, but a home in the wrong area isnt a great investment as it wont provide a high ROI. Here are the reasons why a quality location means a successful return on investment.
Families, like millennials, represent a large chunk of the real estate market. No one wants to bring kids up in the city, which is why they are always on the lookout for a house. But, they wont buy any house. They wont even purchase a home which suits their needs because they have other people to worry about. These people are their kids, and they come first. With this frame of mind, potential buyers look for the quality of schools in the area as well as the proximity apart from anything else. If a top school is close-by, they will pay over the odds for the sake of their kids future.
Crime is a difficult topic to discuss because no one wants to bad mouth another persons community. However, it is a fact that some communities are more prone to crime than others. The average buyer will look to avoid these areas wherever possible, and so should an investor. A property has a greater potential when it can advertise safety for the entire family as it makes buyers feel secure. Plus, they dont want the hassle of having to worry about theft and burglaries while they arent at home. Its easy to see why a property that negates these pitfalls demands a higher asking price.
When it comes to the real estate market, millennials represent more than half of the market. It makes sense, then, that you buy in an area that appeals to this group. Why? Its because when the time comes, youll own a property which in high demand by a large group of people. Not only will you have more chance of selling, but youll also be able to drive up the price. Start a bidding war between two or three interested parties and the asking price will skyrocket. So, where are the areas that are popular with millennials?
At the end of the day, people want to live in an area that they enjoy. There is no better feeling than looking around and thinking this place is awesome.’ Its not only rewarding, but its also the foundation of a happy and fulfilled life. The location has a big part to play in enjoyment. For starters, buyers wont picture themselves having a good time if crime plagues them at every turn. Just as important is the fact that an excellent location adds value. If there is a park nearby, for example, they can go on picnics or walks with the family.
Geography not only matters; its the most important facet of real estate.