Why is Location so Important in Real Estate?
The three most important factors when buying a home are location, location, and location. Too often I hear people talking about making decisions based on the home itself, instead of the location, and that is a mistake.
What is it about the location that makes it so vital to real estate investing?
The condition and price of any home can be changed. You can even change the size of the house. The one thing you can’t change is the home’s location. A great location can change an entire neighborhood seemingly overnight as happened in Downtown Raleigh.
Supply and demand are two factors that will always play a role in real estate appreciation. Housing supply in great locations is limited to the number of homes in that location.
The location creates desirability, desirability creates demand, and demand raises real estate prices.
Here are some of the things to consider when looking for a great location to buy real estate:
Safe neighborhoods are good to consider, even more, important though is to ask the question ‘where will this neighborhood be in five years?’
What makes the location so important is the fact you can’t change it – you also can’t change the school district your home is located in (though the city can). Making schools a very important part of your home’s location, especially when you consider many millennials are buying a home to raise a family and want a great school district.
Time is the most valuable asset in the world, and this is why people will always pay to save time. To be within a twenty-minute drive of work is a factor when choosing the location of a home. This is why the areas close to highways, trains, or other means of easy transportation always seem to appreciate faster than areas farther away.
