What really makes for a good location? Here are five important factors to consider when looking for a great location for your real estate investment.
Location, location, location is still one of the most important things to consider in real estate investing. Sure, you have seen some beautiful and stylish condominiums but if they are located in a not-so-desirable location, you will obviously think twice to buy it. You might probably think about the difficulty of reselling it in the future.
Moreover, while you can practically change everything about a condo – renovate, repaint the walls, and do an interior makeover, among others, the one thing you cannot change is the location of the property. That is why the location is the most important factor to consider when looking for a new home.
Anyone who is new to real estate investing may not fully understand how the real estate market works and might tell you to buy a property in a good and safe neighbourhood. But neighbourhoods change, just like everything else, right? You have to remember to buy a condo in a neighbourhood that you can see the future of. It is best for you to do your research on which neighbourhood is on the brink of being the next best. Safe neighbourhoods are good to consider, but every time you see a good neighbourhood, always ask yourself this very important question, “where will this neighbourhood be in five years?”
Supply and demand are two things that will always play a vital role in real estate value appreciation. As they say, the location of your property creates the desirability, desirability creates demand, and demand raises real estate prices.
1. Nearby schools and universities
Is your condo near schools or universities? This is one thing to consider when assessing your property’s location and potential resale value.
If you are a university student, it would be easier for you to go to school and do the things that you have to do if your home is just literally a few steps away from your school. If you are a parent, you would surely want to send your child to a school that is closer to home. Meanwhile, if you are a local investor or an OFW, you would certainly want to invest your money in a condo property that will yield the highest returns.
Thus, the presence of schools within the location of your condo property remains an important consideration. Owning a condo unit in a good school district gives you an opportunity to easily rent out your property or grow its value and sell it at a higher price in the future.
2. Proximity to transportation hubs and local amenities
Another important reason why property location is important is because condo buyers often look for a place that is in close proximity to transportation hubs and various establishments such as restaurants, grocery stores, shopping malls, laundry shops, hospitals, as well as entertainment and lifestyle centres.
A conveniently located condo property is a lot more attractive especially if it is near important roads and public transportation options like bus stops and train stations. Unless you are eyeing a vacation home in an exclusive and secluded setting, you should consider your property’s close proximity to these local amenities for property value appreciation and rental income opportunity.
3. Property value appreciation
It is common to hear from real estate investors that location is really the key when it comes to property value appreciation. Oftentimes, location dictates the demand in a real estate market. If you decide to live or invest in a condo with a desirable neighbourhood in a location where people are moving, then you can expect your condo unit’s value to increase over time. As the location improves (usually because of infrastructure developments within the area) and as the demand for that location increases, the property value appreciation also increases.
As cited in the recent real estate industry report and property outlook, most real estate buyers nowadays are comprised of millennials. Think whether the area you are buying your condo in is attractive to this market. If so, it is a good indicator that you are buying in a location that is going to have a strong demand, which will eventually increase the property value over time.
You have to understand this market and know what they look for in a location. Millennial buyers want good schools, easy commute to work, and access to local amenities. Keep these in mind.
You know that you cannot change your neighbors. If you have less-than-desirable neighbors, would you be willing to live there? It could also greatly impact the value of your home when you decide to resell it in the future.
Before buying a condo, spend time in the neighbourhood. You should be able to get a good sense of who lives there by spending some time in the area. Do you prefer to live in a condo property with young families and millennials? Your neighbors should also be one of your considerations in choosing a condo investment for you.
Safety should be top of mind when assessing your property location. Check on the crime rate and security in the area. After all, no one would like to live in an area where crime and danger are rampant.
Location is the primary consideration when buying and investing in real estate. But you have to keep in mind that there are other factors to consider when searching for a condo property.
Besides location, you also have to take into consideration the age and condition of the condo property. Find these out so you can estimate and manage the maintenance and upkeep costs. Check also if the price of the property and your budget are matched. Avoid looking for condo property that is beyond your budget. Before searching for a property, it is important to set a budget and stick to it.
The location of your property has the largest effect on your property value. The location of your property provides convenience and accessibility to the things you need, so the closer you are to these local amenities and hot spots, the better your location and the likelier for your property value to appreciate over time. If you are looking to buy a real estate investment, location should always be your number one priority because of property value appreciation and rental opportunity. The better the location, the easier it will to rent your condo property and the more chance to get better income every month.
If you take away anything from this article, take this: the most important factor in buying a property is location, location, location. Do you agree?
If you are looking to buy a condominium unit to invest in, Vista Residences, the condominium development arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. offers ready for occupancy condo units and preselling condominium projects that are strategically within inner city areas, in close proximity to developed business districts and prestigious schools.