The COVID-19 pandemic has led to a complete lockdown of the economy. As the stock market volatility is rising, people are looking at more secure investment options. And as priorities of people change and realizations on investing a condo increases, the demand for real estate becomes high.
Although real estate may not give immediate results, it still continues to be one of the top investment picks during this pandemic because of its stability as compared to other forms of investment.
A buy-to-let property can offer a great source of passive income via rental payments and capital growth via price appreciation. In investing in real estate, property location is the number one factor to consider.
Here are the main reasons why property location matters most in real estate investing:
You cannot change your property location
You can do a lot of things with your property – you can renovate it, upgrade it, buy new furniture, re-layout your unit but you cannot change your location.
You are stuck with it, whether you use it or until you sell it so you really have to be careful in choosing the right income property location.
Location determines the supply and demand for rental market
Location is crucial to determine the rental potential of the property. As an investor, you won’t go for a location which has too many other properties for rent or low presence of renters.
The best thing to do is to look for a property with a good location with reasonable supply and demand.
Location determines the desirability and value of the property
Location will determine how accessible your property is to amenities, schools, public services, shopping and entertainment and other business establishments.
In choosing a property, it is also wise to consider its proximity to major roadways and transportation hubs.
These are important factors that would help you in case you go for either traditional or Airbnb-type of rental strategy.
Location determines the optimal rental strategy
In case you want to concentrate on renting your property, location is something to look at. There are certain places that are more suitable for traditional renting such as those that are close to public transportation, amenities and public services while others are suited for Airbnb especially those within the entertainment areas and tourist spots.
Location determines appreciation
Look for a location that has reasonable real estate price yet is set to appreciate more in the near and long-term future. Land is a very limited resource and it constitutes a large portion of the price of any real estate property.
In real estate investing, location is everything. Always remember that the best investment opportunities lie in those places where there is high demand for properties and where labor market is least damaged despite any crisis. Learning how to choose the right location to invest in can determine the success or failure of your investment so make the most out of it.