The phrase “location, location, location” is so commonly mentioned and discussed with regards to real estate that it’s pretty much expected.
But there’s a reason for it being so ubiquitous amongst real estate agents. The simple fact of the matter is, it’s the most important factor that has to be accounted for when it comes to real estate, whether purchasing or investing.
Not about the property itself…
The condition of a house or a property can be changed. It can be renovated, redecorated, improved, whatever. That’s a factor that the owner can change whenever they feel the need to do so.
Where the property is, however, can’t be changed. That’s im6portant because supply and demand affect the value of properties, as with basic economics. The supply of properties in great locales is, of course, limited.
The location of a property determines how desirable it is, which, in turn, drives demand, which then drives up the prices.
Considering the future
If you ask most people what to do with regards to the real estate market, they’ll tell you to buy in a good neighbourhood. The logic behind it is solid, but the catch is that, like everything else, neighbourhoods can change.
What this means is that a neighbourhood that was once good might become bad or unsafe in the future. If purchasing in a neighbourhood, part of the research done before buying should include what the conditions in a neighbourhood are and what they could likely be in the future; think ahead.
Remember, that the best neighbourhoods will, of course, be the most expensive. The smartmest move, then, is to go for a neighbourhood that’s close to being the ‘next’ best.
What buying in a ‘bad’ neighbourhood offers is a higher floor; the chance of the value dropping is much lower than in a ‘good’ one, which means that risk for investors is lower.
Simply put, when buying real estate, it’s important to consider the future.
Transportation
One factor that location determines is the access to transportation and the commute time.
Take for example, a train stop. Living near it, without being right next to it, is a great spot to be in. Properties that are a short walk from transportation hubs tend to be expensive because they’re very desirable, due to the importance of transportation and commuting. Of course, this means that these properties tend to have their values appreciate a lot faster.
Additionally, transportation hubs tend to be accompanied by local amenities, like restaurants, malls, and grocery stores, which make being near them all the more desirable.
Local amenities
To continue on the above point, local amenities can really affect the price of properties in an area. People want to be as close as possible to amenities like grocery stores, shopping malls, and the like, because time is precious, and, consequently, people are always willing to pay to save time.
To sum it up
When you ask the best buyers agents in Melbourne what the greatest factor is to property value, its location. This is due to how much location affects the desirability of a property.
The convenience of a property’s location, IE; its proximity to important amenities and hot sports, determines its value as well as the likelihood and the rate at which it appreciates.