There’s no doubt that location is one of top criteria real estate investors consider when purchasing an investment property. And it certainly makes sense that you would want to carefully weigh potential neighborhoods in the balance before you settle on a house. While you can renovate a home, put in a pool or add more livable space, it is not possible to move your property elsewhere.
If you are on the fence about a neighborhood, here are some factors real estate investors will consider when picking the right location:
As obvious as it may sound, some neighborhoods are just more expensive than others. If you are looking to buy a property in a more affluent area and still maximize your profits, chances are you are going to have to compromise on certain features. That often means settling for less square footage, fewer amenities, or properties that are older or in need of repair. Ultimately, it comes down to whether or not you are willing to sacrifice some wish list features to stay in budget.
Amenities and Recreation
Amenities and recreational facilities are valuable attractions for homebuyers. These facilities may include swimming pools, play fields, tennis courts, club houses, community docks and lakes. Other outside features that can pique homebuyers’ interest are nearby parks, open play meadows, and direct access to water bodies.
Lower crime rates are yet another important factor real estate investors and homebuyers pay close attention to. The good news is that there are many online tools out there to help you research a neighborhood’s safety levels, such as ADT Crime, Neighborhood Scout, and SpotCrime.
Before any property purchase, you will likely do your due diligence about the quality of the school district. Families with school-age children will make a special effort to live in areas where their kids have access to good education. It’s a good idea to buy properties in neighborhoods served by well-rated schools so you don’t miss out on that market share.
Proximity to Public Transport
Homebuyers in sprawling cities should consider the proximity to public transport when purchasing an investment home. It is clear that public transit can increase the property’s value and rents. However, the cause-effect relationship is affected by many factors and conditions, such as local regulatory framework, regional connections, and national and regional economics. Thus, real estate investors must carefully examine the impact of transit on the property’s value.
Are you ready to invest in real estate and see the value it can provide? RLG would love to help you! Call us today to learn more!