The old real estate axiom “Location Location Location” still rings true! What does “Location Location Location” really mean and why is it such an important factor in determining potential future profits?
What Does “Location Location Location” Really Mean?
Location refers to a geographical area that is in demand. People want to live there. Why? Here are the factors that affect location:
- Quality Schools
- Low Crime Rate
- Proximity to Employment Centers (Jobs)
- Proximity to Transportation Network
- Proximity to Shopping and Restaurants
- Proximity to Cultural Amenities
In our opinion, one of the first questions prospective buyers and renters want to know is “how are the schools?” Test score data is readily available on the Internet. Your Real Estate Agent can also direct you to website and resources regarding schools.
Low Crime Rate
Inevitably, prospective buyers and renters want to know “is the neighborhood safe?” Crime data is also readily available on the Internet. Many local police departments post crime data on their websites.
Proximity to Employment Centers (Jobs)
An extremely important factor affecting demand is how close the property is to local employers. Is the local job market strong? What is the local unemployment rate? Your Real Estate Agent may be able to provide data on employment statistics, and of course, the Internet makes searching for employment data very easy.
Proximity to Transportation Network
Is there public transportation in the area, such as bus, subway, train? How are the local roads? Is there a high rate of traffic congestion? Please keep in mind that congested roads typically mean a high rate of employment. People are going somewhere! If you have time, check the traffic in the area during morning and evening rush hours, and on the weekends.
Proximity to Shopping and Restaurants
Amenities such as quality stores and restaurants add to the “livability” of an area. We are a “consumer-based” society. We like to buy and consume! Whenever we advertise a property for sale or rent, we always mention the popular stores and restaurants nearby.
Proximity to Cultural Amenities
Cultural amenities such as museums, theaters, zoos, national parks, and historical attractions add to the “lure” of an area. If a family is within 2-3 hours driving time of these types of cultural amenities, it’s a positive feature.
Why is Location Important?
Here are 3 reasons location is a critical factor for real estate investors:
- Acquiring a property in a good location improves your chances of receiving stable rental income for the long-term.
- When you decide the sell the property, a good location increases demand for your property, and increased demand may lead to multiple offers.
- If your property is in a good location, it increases your chances for steady appreciation over the long-term.
Whenever evaluating a potential rental property, think “Location Location Location!”
The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.