When deciding on where to buy a property, location is the most important consideration. The property’s location plays an important role in terming its market value. In addition, it will also attract buyers or tenants to your property and how much you can profit from it.
Some locations may seem more affordable than others in the same neighbourhood. Thus, you will need to do research on which properties have better appreciation in the near future as well as its potential risks. Today, we shall highlight key considerations that every property investors should consider.
Any community, either residential or commercial cannot be developed in isolation. Surrounding amenities like shopping malls, transportation hubs, entertainment areas, schools, banks, restaurants and etc. will definitely contribute to the property’s valuation.
Amenities should be varied, as they should cater to residents from different backgrounds, ethnicities, ages and even different countries. Properties located within a well-established development with ample amenities are easier to rent out. Residential properties, nearby to the learning institutions like Colleges and Universities are ideal for investments as they will always be in demand for rentals.
Properties located within and nearby natural environment like parks and waterfront are also good for investments. For example, high-rise with scenic city, sea or lake view will definitely appreciate faster than properties near to factories or sewage treatment plants.
Transportation and access to public transportation are what most house buyers and tenants look out for and are concern about. Accessibility to the development and the roads within the development points to consider as a poorly planned road network within the development can cause traffic congestion and will affect your investment aftermarket value.
It is also important to consider the distance where the property is located from the highway, main road, and public transportation. The further the property is from these features, the more difficult it will be for the community to be mobile and it will influence the value as well as the amount of rent it can command.
Understand types of people living and working within and around the development as this is crucial for you to determine the type of buyers or tenants you could target. An important aspects to consider is the income and education level as well as the mindset of residents. Some communities are more liberal minded while some are more conservative. These factors are important and should be determined early in your consideration.
Not to forget that one of the most important factor that buyers and tenants are concerned about is security. It is good to know if an area is prone to crime and how responsible and cooperative the community is in dealing with this kind of issues. It is important to note if there is a resident established association or committee to overlook the security of the neighbourhood or not.