Location is a popular phrase in the real estate world. The truth is location is the single, most important factor to consider when looking for a new home. The reason why location is important in real estate is it is the one key factor that you cannot alter or change. A property’s condition, cost or its size is adjustable. However, the location of a property is the one thing you cannot change after purchasing.
In this article, RevoHouse Limited outlines why location matters in real estate. It also explains why location is important when buying a house. Read on.
Why Is Location So Important in Real Estate?
It is no surprise that majority of the homebuyers decide to buy a property based on how much they like the house. But, they forget that you are also buying a plot of land when you invest in a property.
In cases where there is a real estate boom, majority of homebuyers rush for the latest house in the market. However, it is only homebuyers who choose the best locales get the most valuable property. This is owing to appreciation.
Appreciation in real estate investment refers to an increase in the value of a property.
Supply and demand are the two factors influencing real estate. For instance, you might find a beautiful house with all the space and amenities you are looking for. But, if it’s in a less desirable neighborhood, you are likely to have trouble reselling it in future.
The location of a property makes a place more desirable. Hence, as the demand for property increases, so do the real estate prices. This adds on to why location matters in real estate.
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Additionally, why location matters when buying a house is it is the only static feature. You cannot change the location of your home once you buy it. It is possible to change almost everything in a home through renovations. Remodel the number of rooms; upgrade the décor and finishes, décor etc. Nevertheless, the location of your house will remain static.
Why Location Is Important When Buying a House
Home is where the heart is. The location of your house will determine your family’s happiness. It will also direct their safety and dictate their financial future.
Here are some factors and features to keep in mind when looking for a location to make a real estate investment:
(i) Centrality of The Property
The specific location you choose to live in a city or town will likely affect how much you pay for your home. Why location is important in real estate is land is a limited, natural resource. Thus land locations influence the price of the properties. Well-developed cities such as Nairobi that do not have much room for more growth tend to have higher prices. This compares to cities with too much room for expansion.
Kitengela town has grown to be a metropolis, with a property boom in the area. Residential and commercial development projects are emerging each day. Located just 30km South of Nairobi, Kitengela is one of the finest places to own a home around Nairobi City. Revo Homes by Revohouse Limited lies 600Metres off the Nairobi- Namanga Highway.
According to data from Kenya National Bureau of Statistics (KNBS) reveals instances of urban sprawl. This usually occurs due to population growth. When sprawling cities start accommodating investors, the outlying areas tend to suffer. This is from a severe decline in property value as it influences the supply and demand of property. This explains why location matters in real estate.
(ii) Good Neighborhood
They say, home is not a place, it is a feeling. Thus, it is equally important to choose a home in a location that caters to your needs and loved ones better. A great neighborhood should be easily accessible. It should also be appealing with a variety of amenities. Look for a neighborhood with good transport networks, with transit routes to the city. Quality landscaping, amazing nature and great views of a home tend to be more desirable.
Why location is important in real estate is that buyers often need close access to amenities. This means near restaurants, shopping stores, recreational centers, and closeness to essential amenities such as good schools, hospitals and worship areas. Proximity to amenities improves a home’s value. When looking at a home, be sure to assess how close the home is to such important amenities.
(iii) Infrastructure and Future Development
Why is location so important in real estate? As a real estate investor, it is wise to consider an area close to areas with major upcoming projects. Infrastructural projects such as roads, railway stations and manufacturing stations signal urbanization. Their presence is bound to pull greater interest in future. This increases the value of property of the area over time.
It is not only the present amenities that matter, but future ones as well. Choose a home in an area with residential and commercial development projects. Projects like new schools, hospitals, malls. This will dramatically improve the property value in future.
(iv)Security
Safety is a major parameter that characterizes a good location. After all, no one wants to live in a dangerous neighborhood where crimes are rampant. Thus, you need to do keen research when accessing the location of the home.
A gated community is by far more secure than a non-gated community. This is because there are firm boundary walls, camera surveillance and security personnel. Such measures protect its residents as well as control who visits your home. Nearby police stations and administration offices also reassures a safe neighborhood.
(v) Future Appreciation Potential
A house is a depreciating asset. Nevertheless, the location of your property is vital. This helps determine a property’s value and its potential to future appreciation. As such, location dictates the demand in a real estate market.
As the demand for a location increases, the appreciation will also increase. This is considering the location keeps developing and improving. A house’s value will be constant if it’s situated in a desirable location where people are moving. Your home can even appreciate throughout the years.
Conclusion
“Price is what you pay, value is what you get.”- Warren Buffet.
It’s important to recognize that a “good” location or a “bad” location won’t stay that way forever. Cities, towns and even suburban areas continue changing. Neighborhoods can drastically transition from less desirable to fast-rising within a few years. It is therefore necessary to do extensive research on the property’s location first. This is why location matters in real estate.
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