February 24, 2021
In a property market boom, homebuyers often clamour for nearly any house that hits the real estate market. This is awesome while it lasts, but once this party is over, only property buyers who chose the right location will be holding the most valuable homes that also depreciate at a slower rate. This is a significant difference in property value is majorly a result of the property's location.
Do you now understand why "location, location, location" is one of the most common mantras in the real estate industry?
A good location signifies different things to different people. However, there are objective factors, but you must consider when determining the ideal location for your home. Depending on your preferences and needs, you may be able to purchase a property with all these factors. There is nothing wrong with that. After all, a house is much more fun just a real estate investment. So, the next time you're shopping for a new home online using your iPhone, keep the following factors in mind.
Where you choose to purchase a home, whether in a small town or a big city, will impact how you pay for your property. Keep in mind that land is a finite commodity, so large cities with highly developed landscapes and less room for additional growth tend to have high prices compared to towns and cities with much room for expansion. Some of these communities tend to have a large number of properties that are inhabited and some areas that seem to have fallen into despair.
In many cases, urban sprawl occurs due to population growth, according to the United States Bureau of Census Data on Urbanised areas. Once these sprawling cities begin to experience a population exodus, it is the outlying areas that usually suffer the most severe declines in home value. This is an example of how location affects the fundamental tenet of supply and demand in any economy.
Your preferred neighbourhood is largely a matter of your personal choice. But a truly great community should have several critical factors, including appearance, available amenities, and accessibility. The neighbourhood might also dictate the size of the lot in which your ideal home is built. So, choose wisely.
Regarding accessibility, it is crucial to look for a neighbourhood near the city's major transit route or has more than one entry point. Travelling to and from your workplace is also a big part of your day, which is why you should choose a home with easy access to public transportation.
The overall appearance of your preferred neighbourhood is also an essential factor to consider. High-quality landscaping, large trees, community spaces, and nearby parks tend to be desirable features to many homebuyers. It is also possible to judge the popularity of the entire neighbourhood based on the period each property in that area stays on the real estate listings or market. If the property turnover is quick, you may not be the only property buyer who thinks that's a great place to stay.
It is also essential to find out if your preferred neighbourhood has essential amenities such as restaurants, grocery stores, retail shops, and more. Schools, hospitals, banks, and other institutions are also important amenities that you may need. Please find out how long it will take you to access all necessary services from your home.
In addition to the present amenities, think about the future developments expected in the community. Find out if the local authorities intend to construct new hospitals, schools, public transportation lines, and any other civic infrastructure that can significantly improve home values in that neighbourhood.
Generally, commercial developments can also improve the value of a home. This is the main reason you should consider any planned future developments in a certain community before you buy a property.
Many real estate agents, property sellers, and other experts in this industry unanimously agree that there is one aspect of home hunting that surprises people. Suppose you have narrowed your options to two houses that start side-by-side in a great neighbourhood. One of the properties needs updates and repairs but has an oversized lot. The other house is in great shape but sits on a very small lot. The cost of the two properties is the same. So, which house should you choose?
In many cases, the property in need of repairs but sits on a large lot is a better investment than the great house in a very small lot. Keep in mind that your home is a depreciating real estate asset. But the land will maintain its value and probably appreciate over time. Suppose you bulldoze both houses, the more significant piece of land will sell for more money compared to the small piece of land.