3 Things You Need to Know About Real Estate Location
Aside from the house itself, buyers need to consider the property’s location. Does it fit their needs? Is it safe? Does it fit in their price range? Before deciding to settle on one location, here are some things people need to know about a property’s location, in terms of buying and selling:
1. Locations affect the price of a property.
Most of the time, a property’s price depends on its location and what types of attractions or establishments are accessible in the neighbourhood.
Here are some factors that makes locations more desirable, and therefore, more expensive:
Proximity to public transportation. People don’t want to endure long travel times to and from work or school. They prefer home locations that are just a short drive or a few minutes train away from their everyday destinations.
Proximity to schools. If you are a parent, you will surely be concerned about your child’s education and choose a location where good schools are near their homes.
Scenic views. A home with a good view of the cityscape, the beach, or the mountains are sought-after.
Nature. Neighbourhoods near natural parks are also sought-after by nature lovers.
Proximity to health care services. Health emergencies are not uncommon. Because of this, people want to settle somewhere that is near hospitals or to any medical attention in case of emergencies.
Entertainment and shopping. People want restaurants, malls, and other establishments near their homes for convenience--why drive if there’s a mall within walking distance?
On the other side of the coin, here are the factors that make location less desirable:
Proximity to railroad tracks, highways, and being under flight paths. No one would want to endure the noise of trains and the noise of planes taking off everyday.
High crime rates. People prioritise their safety first and foremost, and a neighbourhood with high crime rates do not give that.
Proximity to hazards. Aside from high crime rates, people want to stay away from neighbourhoods that are in the path of any kind of hazards.
2. A buyer’s choice of location can be influenced by property taxes.
Aside from the property price range, buyers should take note of the property taxes in different areas and compare them. Buyers should estimate the property taxes alongside the monthly payment.
Real estate agents with a lot of knowledge about different neighbourhoods can help buyers discern the right property for their price range. This could also help them find neighbourhoods with more affordable prices that they don’t have on their radar before.
3. Location could also affect a property’s resale value.
Buyers should look ahead and think about what could affect their future resale value. They need to look into information about planned commercial development in the neighbourhood they’re eyeing. These kinds of information could be found local government sites.
Buying a property in a new development that is still in construction, people may have trouble selling, as future buyers would look at newly built homes. On the other hand, if they’re buying in an established neighbourhood, they should look at past sales and buy in the neighbourhood where homes have the same or increased value.
Another thing to keep in mind: buyers should be prepared to settle in the home they’re eyeing for a long time. If they don’t see themselves settling there for at least five years, they might have to re-evaluate.
If you’re a buyer, here are some tips that might help you:
Make sure that you know the crime rates in the neighbourhoods you’re eyeing. You can ask for crime reports from the local police stations.
To avoid choosing locations that are near natural hazards, ask for reports from the local government.
Go to the neighbourhood you want at different times--commuting hours, brunch, and at nighttime--and see if you want the atmosphere of the place.
Make a list of your needs in a location and your deal breakers. This might help you narrow down your choices.
Take your time. Finding the right balance between your needs, price, and the location might take time, but being comfortable and contented with the home you choose is worth it.
People often say ‘location, location, location.’ It’s true - location is a very important factor in choosing the perfect home. If you want some more advice about property investments or anything property related, please get in touch with me at 0402 909 727.