While several factors determine a home’s value, none has as much impact as location. Location determines access to amenities, tenants’ availability, among other needs.
Here are some of the factors to consider when looking for an ideal location for your real estate investments:
1. The Commute Time
Before you settle on a property, determine how much time you will spend on the road. Consider if you are okay with more extended periods on traffic to and from work. While most people prefer a great home, even if it comes with a long commute time, over time, it becomes hectic. An ideal location is close to public transport systems with developed commuter rails and major highways.
The primary concern with commute time is striking a balance with property prices. Most homes located within the suburbs, while they come with less commute time, are incredibly costly. To help you settle at the appropriate commute time, consider the commuting costs. Opt for longer commute hours if you have a flexible job that allows setting your working hours or telecommuting.
2. Lifestyle
Everyone has certain qualities that make their ideal location. Whether you are looking for a slow, calm life, or a place full of amenities, you can find somewhere perfect. Before settling on a property, take time to review all the essential amenities you need.
Use sites like Walkscore to determine the areas’ walkability and access to places of interest. Also, visit the place in person to see if it embodies what you need in a position of residence.
3. Development
Upcoming constructions in an area is an indication of a great place to stay. Planned developments like hospitals, schools, and public infrastructure are likely to improve the property’s value.
Look out for the area’s private property developments as well. An influx in new home constructions is a sign of a good neighborhood. It shows increased buyer demands, which is great for investments.
4. Neighborhood
The neighborhood you are moving into is almost more important than the house itself. The community determines how you raise your kids and the general wellbeing. While you can renovate or repair a damaged home, there is so little you can do about a bad neighborhood. Take time before committing to a property to determine if it is the right neighborhood.
Do your due diligence and don’t rely only on what the realtor tells you about the community. One of the indications of a great neighborhood is when they belong to a homeowners association (HOA). The HOA provides guidelines and regulations for the residents. Also, speak to the residents on their opinion of the place.
The general appearance of the neighborhood shows how great it is. Look for how much the current residents are investing in the place. A lot of investments in businesses like restaurants, shops, and grocery stores are indicative of a developing area. Such sites have high prospects of a rise in the value of the property.
Lastly, look for the state of the homes in the area. Well maintained homes with excellent landscaping are signs of caring neighbors.
5. Lot Location
The other factor to consider is the actual location of the house. Before you agree to take on a property, confirm how accessible it is by road. Look for the presence of any restrictions on the business or constructions you can set up in the future. Inspect the area for environmental hazards like nearby manufacturing plants.
Even though purchasing a property at a wrong location can be easy, selling it, later on, will be a challenge. An ideal location has a great view, is free of noise, and can accommodate a high-end lifestyle.
6. Safety & Crime Rates
There is no amount of investment that is worthy of in a crime hotspot. Other than the lack of peace of mind, you will struggle to find tenants for your property. Research to ensure the new home is in a safe area.
There are several online resources to use to determine the safety of your area. SpotCrime and CrimeReports are the leading sites with police and crime information in any area. The other sites are NeighborhooScout.com and Safewise.com. Apart from the online resources, move to the place in person to verify the information you already have. Walk around the neighborhood at any time to have a feel of the area both in the day and night. Look for indications like local businesses, children playing, and community events to determine safety.
Talking to the local community also helps determine the safety and to collect insights on the lifestyle of the area.
7. Local Amenities
The availability of local amenities is a must when looking for an ideal location. The place should be accessible to amenities like family attractions, shopping, and restaurants. The only concern that comes with property near amenities is the cost. You may have to pay a premium to land these properties. Even though this should not be an issue as the demand is assured.
You also need to look for the public transport system, street lighting, and water supply. Several sites like Trulia and Zillow comes in handy when comparing the distance between the property and the essential amenities.
8. Schools
Schools are indications of great places to stay, even if you don’t have kids. Having excellent schools helps in ensuring the home’s value. Like safety and crime, you cannot depend on online resources fully to determine the state of schools. Start by collecting information from sites like GreatSchools.org for data on the different schools. After this, you visit the school in person to establish infrastructure and the general states of the schools.
Bottom Line
Market analysis is vital at every stage of investment. Using this guide, you can quickly determine the best market to invest in. It can also come in handy in evaluating the location to confirm if it’s the right choice.
Are you looking for more ways on how to land the best location for your real estate investment? Prospect Now is the place to visit for all you need to know about the right location. Contacts us today to get started.