Whether you are buying land for residential or commercial use, location is very important. You can change many things about your property, be it size, price or condition, but, you can’t change the location.
So, let’s have a look at the reasons which make the location a crucially important factor for the success of property investment.
- PROPERTY PRICES
Where your property is located will determine the price you have to pay for it. If the property is situated in a prime locality, it will command a better selling price with more profitable options in the times.
However, if the buyer invests in neighbourhoods that are worse off, though the cost may be a little lower, in the beginning, there will eventually be a lack of demand, lower rents, and lower prices.
2. DETERMINES THE SUPPLY AND DEMAND
The location creates the desire for a purchase and the desire, in turn, creates demand which causes a rise in price. Property values are driven by supply and demand. A property’s value today may not be its value in the future.
3. LONG-TERM APPRECIATION
Some locations are set to appreciate more in the near future and long-term future. You can make money not only in the short-term(through rental income) but also in the long-term through appreciation.
4. OPTIMAL INVESTMENT STRATEGY.
When you invest in real estate, you have multiple options in terms of strategies. Location will help you decide on the best strategy in your particular market.
5. DETERMINES HOW DESIRABLE YOUR PROPERTY WILL BE.
The location will determine access and proximity to amenities, public transportation, other public services, to tourist attractions, etc. All these are common factors that are to be checked whether you are buying a property for residential or commercial use.
