If you are a new or aspiring real estate investor, you must have heard a lot about the importance of location in the success of an investor or realtor. The location of a property is the most important factor determining its price. Whether you are buying a property for rental income or for investment, it is its location that decides what returns you get out of your investment. The decision to purchase a property is hugely dependent upon whether the location is good or not.
They will highlight location as a positive feature
As an investor, you should remain alert to the tactics of sellers where they try to highlight the positive future of the location while downplaying the negative aspects of the location of their property. You should have the acumen to look beyond what you are being made to see as a wrong decision can turn your investment into a bad deal. You need to gather information about the location to find out if it is mere hype or there is some justification for the hype being created by the seller.
Beware of words like proximity and walking distance
You must have seen how prices of properties in a neighborhood rise at a fast pace once it is declared as hot and desirable by builders, scribes, and investors. People suddenly become interested in properties in this neighborhood, giving a boost to price of properties. It is only natural for property owners to make the most of this situation by trying to sell them at a high asking price. Even owners having properties away from the location claim their properties to be in high demand, trying to maximize their profits by extending the boundaries of the hot neighborhood. However, you should not fall prey to descriptions like pear or near when searching for investment properties. Insist on properties inside the neighborhood rather than those highlighted as close to the area.
Do not forget that even the most desirable of neighborhoods have some drawbacks in terms of their location. Yes, the property owner is right in describing as his property being situated in a very hot neighborhood, but he will never tell you location drawbacks associated with his property. Buyers searching for a quiet property will never be attracted to a property that is situated on a main road or one where overhead power lines can be seen. Therefore, you must do your own research about the actual condition of the location rather than simply going by the words of the property seller.
Personal visit will open your eyes
Many a times, property owners highlight proximity to a prominent company in a bid to attract those looking for employment. Yes, proximity to a big company or institutions of higher learning might be able to attract tenants for you. However, you need to a pay a personal visit to the area to find out how near the property in question is to these landmarks. At times, even properties 4-5 km away are advertised as in the area or close to prominent landmarks.
Put yourself in the shoes of property owners and you will find that you will do the same if your goal is to catch the attention of large number of buyers. A hot neighborhood, proximity, and walking distance are some of the common phrases used by sellers to simply catch the attention of the buyers to their listings. As a buyer, you need to be aware of these selling tactics and do your own research to find out the reality about the location of the property.
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