When buying or renting a property, it is important to check for location. This is because location is the most crucial factors influencing property value in the real estate market. It is as important as pricing because it determines how profitable the investment will be. In this blog post we will be discussing the importance of location in real estate investment.
Property value
Location has a direct importance on property value. Properties with attractive surroundings, proximity to amenities, and good infrastructure tend to command higher prices. However, properties located in less desirable areas may experience slower appreciation or even depreciation.
Accessibility
Location impacts accessibility and convenience which are highly valued by home owners or tenants. How accessibilities is this property to schools, hospitals, markets, tarred roads and other amenities. Buying or renting an apartment in areas that’s far from these facilities is incurring extra cost on you.
Development
Recently due to land banking, people now buy lands in developing areas with the hoping of it developing in a few years’ time. It is important to consider the future development plans and ongoing projects in the neighbourhood. This is because this has a potential of influencing the property’s long term value.
Proximity to job market
If you are a real estate investor and you are looking for a better location then areas with presence of job opportunities will be a good one. Areas with strong market attract more residents leading to more rental income for property owners.
Safety
Areas with high crime rate will usually not have more people. This will disrupt business and day to day activities of the people. Therefore, it important to choose a neighbourhood with low or no crime rate. Safety of the location will determine the market value in the long run.
Environmental Condition
The environment condition of an area matters a lot. Before renting or buying a new home in an area most especially an area you are not familiar with, you must do a thorough research on the environmental condition of that area. Is it waterlogged or flooded during the raining season, is it motorable, and so on. Regions with good air quality, access to parks and green spaces tend to be more attractive and properties located in such areas may experience increase in value.
Rental income
Properties in good locations are more in demand, which can lead to higher rental rates. Properties that are strategically located tend to generate high rental income to the owners. This will give room to the owners to venture into other business investments.
Conclusion
In real estate, property location is vita since it affects both property value and quality of life. When purchasing, selling, or making investments, location needs to be the first priority.
You can also read 6 best places to invest in real estate in Nigeria
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