How to find the right location for your investment property?

How to find the right location for your investment property?

Real estate booms don’t happen too often. If you want to be successful in your property investment endeavour, perhaps it is best to concentrate on finding the right location for your investment property. Location is arguably the most critical factor to real estate success. Once you find the right property situated in the perfect location, it can set you up for success.

This is why you must consider the appearance, accessibility, and amenities of a neighbourhood before even considering investing in a property there. Thinking ahead is also good, so make sure you check out plans for development in the area.

Most people decide to buy a property based on how much they like the house or apartment. They fail to consider that you are also purchasing a plot of land when you buy a property. The house currently standing on the said plot of land can always be demolished or renovated and remodelled. The land, however, doesn’t change.

In much the same way, city properties also stand on plots of land which is either considered good or bad, relative to the rest of the city. This makes the location the most important driving force behind the value of a property.

Look to the future
Good locations usually have fantastic transport links, good schools, accessible shops, and a feeling of community. While all these elements are true to a location for a few years, it doesn’t always remain that way. Change has to be factored in. Everything changes, including cities, suburbs, towns, and rural communities.

Try not to look at what a neighbourhood or location looks like right now. See beyond the present, into the future. What will this place look like ten years down the road? Is this a good investment? After all, real estate is pretty long term. It won’t serve you well to keep on “living in the moment.”

The factors to consider when looking for a good location
If you’re looking for a property to invest in, keep these factors in mind when considering location:

Centrality
Land is not an unlimited resource—it’s a finite commodity. This is why cities with less room for growth can be more valuable than cities with a lot of room to expand.

Neighbourhood
The neighbourhood is one of the more personal factors in choosing a property location. However, even though it depends mainly on your taste, it still needs to be excellent in appearance, accessibility, and amenities. For instance, the neighbourhood needs to be relatively near to transit routes to commute to and from work. It also needs to have a lot of trees, good landscaping, and safe parks. In addition, it has to have grocery stores, restaurants, and shops for convenience. For families, schools will be an essential driving factor as well. Finally, it has to be safe. Check out the crime rate around the area and the safety measures for any eventuality.

Development
What is it going to look like in the future? This should be the first question to ask yourself before you decide on a property or its location. Are there development plans in the works, or is it ongoing? What kind of establishments are in development? Does it include new schools, community centres, public transportations, hospitals, or other infrastructures? Make sure to find out whether any public, commercial, or residential developments are planned.

Lot location
Where is the property located relative to everywhere else? Is the house you want to buy plopped near a busy road or a highway? Does it stand next to a commercial property like a gas station, grocery store, or a busy parking lot? Or does it have a fantastic water view that will surely make it easy for it to be sold at a very steep price? Make sure to consider these questions before making a decision.

The property
The property itself is the last factor. Logically make your decision. Try not to let your initial impression overtake your choice. If you choose between a home in need of a major overhaul but with a larger lot and a house in perfect condition sitting on half the former’s land, go with the first, mainly if they belong in the same good neighbourhood. Why? One can always upgrade the house, but the land is constant.

How to pick the best home location
This is simply answered as: do your research. Property investment does not rely on emotion or instinct. Instead, it utilizes logic to make an informed decision.

Check out the area yourself and take the advice of investment property strategists that know the area well to get a more professional opinion on the location.

We’re here to help. Contact us to book a complimentary consultation with Mirren’s investment property strategist.