Why is location important in real estate

A safe way to invest in real estate , therefore, is to buy a house in a great school district. Hassle free commutes to work and school is a top priority for many home buyers. Whether its public transportation, self-driving, walking or biking, commute time is an essential factor when choosing a location. In a major city, buying a house where the city is planning to build a new train stop, for example, is the way to go.

Once the train becomes available, the value of your property will grow significantly. Bottom Line. People still ask themselves why is location important when buying a house. And the answer is simple. Alternatively, just because the neighborhood isn't safe right now, doesn't mean it won't be safe in five years. Safe neighborhoods are good to consider, even more, important though is to ask the question 'where will this neighborhood be in five years?

Is the area you are buying in attractive to this demographic? If so, that is a strong indicator you are buying in a location that is going to have strong demand, and demand raises real estate prices. The number of millennials who are choosing to buy instead of renting is growing. When you're buying a house you should do so with a plan. The average person moves every 7 years, so if you pay attention to who your buyer is likely to be in the future it will make selling it down the line a lot easier.

If you buy in a location that is equally attractive to the largest pool of buyers you will have a much easier time when you go to sell. What do millennials look for in a location? 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. To the right is a photo of one of the best elementary schools in the Cary, NC area. The homes that are for sale in the Davis Drive Elementary school district are highly desirable estates. Schools may even be the most important factor in a location, especially when you are going to reverse engineer a neighborhood.

Are there plans to develop brand new schools in that area? Are the schools that are there rated well? These are the type of questions you need to be asking yourself, as many people will not consider buying a home in a location where the schools are bad. One of the safest ways to invest in real estate is to invest in the school district. Keep in mind schools are not set in stone.

In Raleigh, there is a growth rate of nearly 70 people per day, and thus the schools are becoming overcrowded. They are building new schools to keep up with consumer demand and this can change the school assignment of the home. Whether it's driving a car, biking, public transportation, or even walkability the commute time is a factor when choosing a location. In major cities, if you buy a house in a location where the city is going to build a new train stop you will see instant appreciation once that train becomes available.

Obviously, if you live right on the tracks it is a different story, however, a short walk to the train stop should make the desirability of your home increase. It's also likely that a train stop will bring other local amenities such as grocery stores and restaurants. 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. People love the idea of being able to walk to work, or to the grocery store, restaurants, and other local amenities.

The best location for easy transportation is near a major highway or public transportation. Typically, downtown living is a great place for walkability.

Local amenities have a direct impact on real estate prices in the area. Grocery stores, restaurants , shopping, entertainment, are some of the top amenities people are looking for when buying a home.

Buyers want these amenities within a minute drive. If the location of the home you're buying is within a few miles of most of these amenities it will help raise your property value. Some of the buyers I work with personally make certain amenities a requirement in their home search.

Particular grocery stores have to be within a minute drive for certain buyers or they won't even consider the house. Buyers preface their choice of amenities with statements like 'this may sound weird, I have to be within 10 minutes of a Trader Joe's' not realizing how normal that request truly is!

The location has the largest effect on home values thanks to the impact the location has on the desirability of a home. Individuals place value on their homes based on their preferences, circumstances, or lifestyles. Are you thinking about becoming a landlord? Location is also important to real estate investors shopping for rental properties. They will take the time to analyze and run numbers because they are looking for potential appreciation and projected positive cash flow.

Determinants of a profitable rental property are—to name a few—nice neighborhoods, good schools, low crime, low vacancy rates, high rent demand, and a strong job market. All of these have something in common: location.

For example, some landlords reported earning a good cash flow from rural properties in the midst of a boom in the energy sector, like big oil, and then later experienced a surge of vacancies after that industry dies. Others expressed their luck of owning properties in the heart of Silicon Valley where tenants compete with each other and pay more than double the national rent average.

These are a few examples that support location as an important factor when choosing where to buy a home. Look for rental properties near centers of employment, local attractions, and where rental properties are in high demand. We learned why location is important. Are you house hunting? Check out this helpful advice for first-time home buyers! Research the local public schools even if you don't have kids or plan to have them. The reason? A reputable public school district can boost an area's home values and will figure into the profit you can realize when you want to sell.

Many buyers target neighborhoods with strong public schools. Check out the transportation and nearby amenities. Buyers usually want convenience when it comes to shopping, grocery stores, dry cleaners, and entertainment.

For transportation, consider roads and public transportation, such as bus stops, subway stations, and public bike-share locations. Research whether anything is going to substantially change the area, such as any planned developments or construction or new housing starts. A location may seem ideal only to undergo sweeping changes in the near future—of course, some changes could be positive ones that improve an area's desirability.

Location isn't entirely subjective—in fact, it's based on a fairly static set of criteria. When you set out to shop for a new home, make sure the neighborhood isn't just desirable to you but has objective qualities—such as attractive amenities, safe streets, and good schools—that will help ensure your investment appreciates in value over time.

Mortgage lending discrimination is illegal. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. Real Estate by Boston.

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