I frequently hear individuals discussing making judgments based on the home itself rather than the location, which is a mistake.
What is it about the location that makes it so important in real estate?
Any home’s condition and price can be altered. You can even alter the house’s size. The location of the house is the one thing you can’t change. As happened in Downtown Raleigh, a fantastic site can transform an entire area in an instant.
Real estate appreciation is always influenced by two factors: supply and demand. Housing supply in desirable areas is constrained by the number of apartamentos de venta en playa del carmen available.
Desirability is created by location, and demand is created by location. Demand drives up real estate prices.
When looking for an excellent place to buy real estate, consider the following factors:
Reverse Engineer the Neighborhood’s Future
Anyone who doesn’t understand the real estate market will advise you to buy in a good/safe area. Guess what, just like everything else, neighborhoods change.
Buy in a community where you can see the future, not one where you can see the past. When it comes to communities, do your study as well, but keep in mind that the greatest ones will be more expensive investments. You want to invest in an area that is on the edge of becoming the ‘next’ best.
Let’s take a look at a real-life example of a home I bought in a “poor neighborhood.”
I’m up an estimated $63,000 ten months later, and since a less desired property down the street sold for $200,000 in three hours on the market, I’m up even more. On my block, there’s another, smaller property for sale for $319,000 (it’s overpriced). UPDATE: The current value of this home is $325,000. (in 2021).
This area has become one of the most sought-after, particularly among millennials.
Guess what benefits buying in a ‘bad neighborhood’ has over buying in a ‘good neighborhood.’ A higher level. Because the neighborhood is already regarded ‘poor,’ it is less likely to devalue, lowering risk.
This home is less than a mile from Downtown Raleigh, NC, and with the city’s growth, there are lots of buyers interested in purchasing in this area.
For millennials, young families, and retirees, Raleigh and Charlotte are two of the most desired cities. They are fantastic places to live! Everyone seems to want to live downtown, especially millennials, who account for more than 60% of all home buyers.
People must turn their attention away from the neighborhood’s current state and toward the neighborhood’s future. This is what I mean when I say “reverse-engineering the future of the neighborhood where you’re buying a house.”
Many real estate agents will advise you to “purchase in a safe neighborhood,” which is sound advice but ignores the principles of real estate investing. Just because the neighborhood is safe now does not guarantee that it will remain so in five years.
Alternatively, just because an area is unsafe now does not guarantee it will be thus in five years.
Safe neighborhoods are vital to consider, but even more so is asking yourself, “Where will this neighborhood be in five years?”
When looking for a location, it’s critical to remember that millennials account for more than 60% of all purchases.
Is the neighborhood where you’re buying appealing to this demographic? If that’s the case, you’re buying in a hot market, and hot markets mean higher real estate prices. The number of millennials who choose to buy rather than rent is increasing.
When purchasing a home, you should have a strategy in mind. Because the average individual moves every seven years, paying attention to who your buyer will be in the future will make selling your home much easier. You will have a much simpler time selling if you buy in a place that is equally appealing to the broadest pool of buyers.
What qualities do millennials seek in a location? For Millennial buyers, under $300,000 is the sweet spot; they also want superb schools, convenient commutes to work, and local attractions.
The fact that you can’t change your location, just like you can’t change the school district where you live, makes it so significant (though the city can). Making schools a key component of your home’s location, especially when many millennials are looking to start a family and want to live in a top school district.
A photo of one of the greatest elementary schools in the Cary, NC area can be found to the right. On GreatSchools.org, Davis Drive Elementary School gets a 10/10 rating. The Davis Drive Elementary school area has some extremely attractive estates for sale.
When it comes to reverse engineering a neighborhood, schools may even be the most crucial thing to consider. Is there any intention of building brand new schools in the area? Are the schools there well-regarded?
These are the kinds of questions you should be asking yourself, because many individuals will not buy a home in an area with poor schools.
Investing in a school district is one of the safest methods to make a real estate investment. Keep in mind that schools are not fixed. Raleigh’s population is growing at a rate of approximately 70 people each day, causing overcrowding in the schools. They are developing new schools to meet customer demand, which may affect the home’s school assignment.
Investing in a great school district is a safe way to make a real estate investment. Period.
For many house purchasers, a short commute to work is the cherry on top.
Commute time is an issue when picking a place, whether it’s by vehicle, bike, public transportation, or even walkability.
If you buy a home in a big city where the city is planning to build a new railway station, you will experience immediate appreciation once the train is operational. Obviously, if you reside right on the tracks, things are different; but, a short walk to the railway station should boost the value of your home. A train station is also likely to bring additional local amenities such as grocery stores and restaurants.
People would always pay to save time since time is the most important item in the world. When it comes to choosing a home, being within a twenty-minute drive of work is important. This is why areas near highways, railways, or other convenient modes of transportation always appear to appreciate faster than areas further away.
Walking to work, the grocery store, restaurants, and other neighborhood amenities is appealing to many people. Near a major highway or public transportation is the best location for simple transportation. Typically, living downtown is a terrific spot to walk.
Local amenities have a direct impact on the area’s real estate pricing.
Grocery stores, restaurants, shopping, and entertainment are among the most sought-after features in a home.
These amenities should be within a 5-minute drive for buyers. If the home you’re buying is within a few miles of most of these facilities, it will assist to increase the value of your property.
Some of the buyers I work with make certain features a must-have in their home search. Specific grocery stores must be within a 10-15 minute drive for certain purchasers, or the house will not be considered. Buyers make statements like “this may sound strange, but I have to be within 10 minutes to a Trader Joe’s,” not realizing how common that request is!
What Effect Does Location Have on Values?
Because of the importance of location on a property’s attractiveness, location has the greatest impact on home values. A home’s location makes it convenient to get to places like downtown, the airport, shopping, and more! The better your location and the more likely your home will appreciate in the future, the closer you are to convenient hot places. Land is one thing that isn’t being produced in vast quantities, which is one of the reasons why location has such a significant impact on property values. If you’re trying to purchase real estate as an investment, location will always be your top consideration because you want to maximize value and rentability.
The better the location, the easier it will be to rent out the home and the more you will be able to earn per month while also appreciating. Some of the finest neighborhoods to invest in real estate in Raleigh are those with wonderful locations but not necessarily high real estate prices. That’s how you get the most out of your investment: catch the community as it grows.
Which is more important: the location or the home?
This is a difficult decision for many people, especially those who are purchasing their first house. The solution is straightforward: location. When it comes to property value, location is more essential than the house. Only you can decide which house you like. Don’t jump at a house that is outside of your intended area; finding a home you will adore in the right price range is often a matter of patience. A home can always be updated and upgraded, but you can’t change the location!
If you’re considering buying a home outside of your ideal location, take a step back and consider whether you’ll be satisfied living there. Frequently, our clients will sell their property in order to be ‘near’ to something. People are always motivated by their surroundings, whether it’s school, work, or their favorite hangout areas. Make sure the location of the home is your top priority when purchasing a home, and you will be in a terrific scenario.
Last words on the significance of location:
If you’re buying a house, the first step is to decide on a location. It is the most crucial consideration when purchasing real estate.
Even the location inside the community has a significant impact on the value of your home. It makes sensible to start looking for specific areas inside those communities once you’ve decided on a basic area to live in. Because the other properties in your community will raise your worth, you want to buy at the low end of the neighborhood’s price range.