What Is Location?
Location is a specific area where the property is located. It plays an important role in helping investors to make buying decisions. The location has a wider scope in the real estate market as people seek properties based on different location preferences and requirements. The ‘Location’ is a base factor. Investors and buyers invest in such properties that are available at their favourable location.
The positive neighborhood compels people to buy & invest in the available real estate products in that particular location as it promises a higher Return On Investment (ROI) and periodic growth with time. This positive location invites so many amenities, advantages, benefits, favors, and factors to put money in any commercial, land-based, rental, or residential property, irrespective of the pricing.
In this informative, we will discuss all those factors that affect the value of property due to its location. These factors are practically analyzed, implemented, and practiced in the real estate market. It is one of the most important factors that people consider while buying any property. The location in demand makes it easier for an investor to trust the targeted property and seek unmatched profit out of their investment for the short term or long term.
Neighbourhood Factors Affecting The Property Value
Let’s bring some vital factors into the spotlight to understand how ‘Location’ works as a centre point for the buying decision. It will also explain why investors consider this factor more than the other factors. You may find various reasons to consider and analyze the location factor before making any property purchase decisions.
1. Accessibility & Convenience
Every individual wants to spend their hard-earned money on a property that is easily accessible & conveniently approachable. In the 21st century, we can expect to have developed interconnected roads, and we have multiple commutation resources to move from one place to another. Thus, any location that has easy accessibility is an ideal location for the investment. Even if the site is located connected to inner roads, those pathways should be properly maintained for mobility.
2. Amenities
Amenities and offerings are often adjoined with the location of the targeted property. So, one needs to cross-check for all the amenities like connecting roads, availability of electricity & water supply, accessibility of markets, dispensaries, hospitals, schools, colleges, government departments, railway stations, airports, etc. All these features of a location make it worthy of investment. These offerings are location-specific and help individuals to have a quality life around. Such amenities draw the attention of new investors, and one can get better value for the said property.
3. Atmosphere & Greenery
The atmosphere & surrounding greenery make a place liveable for the people. Today, we are facing the biggest environmental challenge, and that is Climate Change, which calls for Global Warming & poor air quality. Therefore, a real estate site surrounded by a well-maintained green zone would be more preferred by investors than any other location. Always look for a location that is distant from industrialization & mine sites.
4. Community & Lifestyle
Humans are social animals, and to sustain life, we all need to stay inter-connected with each other. A qualitative community or society encourages a healthy lifestyle. It balances the rule of nature too. Being an investor, one would always prefer buying a property in a healthy community, where they can relate themselves as a part of it. So, a healthy community compels people to buy property in that area.
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5. Crime Rate & Safety
A neighborhood with a high rate of crime can never develop a safe environment for people. Every investor searches for a crime-free neighborhood for the personal safety & safety of their family. It is important to locate a better location for the investment, where, there is less or minimum involvement of criminal activities. People experience theft, snatching, street fights, false language, misbehavior cases, and fights for parking space more often. Thus, it is better to invest in a property that is surrounded by a safe and secure neighborhood.
6. Industrial Setup
You should avoid buying a property near an industrial setup if you are interested in investing in a residential property. It will be harmful for you to stay around any industry. On the other hand, buying a commercial property, especially a manufacturing plant, a warehouse, or a storage space near the industrial setup, would be an add-on advantage. So, location matters a lot when buying a property or land.
7. Infrastructure Development
The futuristic infrastructural development in the targeted area can influence the pricing of real estate projects. Any projected school, collection, hospital, training center, museum, amusement park, theme park, and brand outlets in the area can have an impact on the valuation of a property. Thus, an investor should always consider any futuristic development projects too. Any development or positive change in the targeted location can improve the property pricing.
8. Market Location
Market location also plays an important role in making people decide on where to invest in the property. Every society or locality needs markets nearby to buy necessary goods. Any property accessible to local markets is a good option to invest in. Such real estate products incur higher returns on investment in less than expected tenure. Locations with no or fewer marketplaces around are not growth-oriented sites for investment purposes. However, one can still buy a house as a residential property.
9. Public Transportation
The public transportation system in any locality makes it accessible on both sides. Multiple mobility resources for the location will be advantageous for an investor who buys the property to reside in for official purposes, or investment purposes. Every person needs connectivity between the internal roads and the main roads. Thus, an ideal location will offer you connectivity and a public transportation system.
10. Supply & Demand
It is one of the main factors whether a person will invest in a property or not. The demand for any property is subject to the promised supply of the targeted real estate product. In areas where the demand for the targeted property is higher but the supply is low, the value of the said property is intended to rise eventually. On the other hand, where the supply is high, but demand is low, the location is considered negative for the rise in value.
Conclusion
Buying a property or investing in any real estate project is not a child’s play. You need to understand the market scenario first, and you should have a basic understanding of various types of properties. Knowing advanced features amenities, and government schemes on the targeted property would be an advantage. However, awareness about the neighborhood is essentially needed because it can have a long-term effect on your buying decision.
It is better to hire a professional realtor to do ground-level work for you and guide you through the decision-making process. An experienced industry professional is well-versed with the latest real estate market trends, and he has sound knowledge about the ideal locations for investment purposes. You should always invest in real estate with the association of reliable realtors. Consider all the above factors for analyzing the targeted location before any investment.
