If you are looking to buy a house as a principal residence or as an investment property, it is important that you buy in the right location. For example, buying in a trendy location could make it easier to sell for a profit in a couple of years or make it easier to rent that property to tenants. What are some other reasons why location matters when buying real estate?
Are You Close to Major Highways or Other Attractions?
As a general rule, it is easier to sell a home that is closer to schools, stadiums or major highways. This is because people want to be close to the things that matter most to them or want to be able to those things as quickly as possible. However, those who enjoy living in rural areas or like open spaces may want to buy property as far away from major roads or other attractions as possible.
Who Is Going to Rent Your Property?
When buying a property for rental purposes, you have to know that there is market willing to pay your preferred rental rate. If you buy a cluster of apartments near UF, you may have thousands of college students each year willing to pay to use your property.
If you want to appeal to executives, you may want to purchase real estate closer to the airport so that they can get in and out of town with ease. Conversely, you don’t want to buy in an area where incomes are low or where few people live because you may not get as much per month.
Do the Kids Have Good Schools?
Parents prefer to buy or rent homes in areas that have good schools for their children. Therefore, it may be in your best interest to buy a property in a good school district. Typically, good schools are representative of a safe place to live, which is also appealing to most people. Therefore, you may be able to charge closer to the top of going market rates to either rent or sell your home.
Don’t Forget About Sprawl
People tend to want to live as close to the city as possible without spending too much on rent or a mortgage payment. If you see that a neighborhood is becoming more popular, buy a home just outside of that neighborhood. This is because those homes will be seen as bargains even as prices go up compared to what a person would pay to rent or buy in the heart of a city or large town.
If you are looking to buy residential real estate, make sure that you know the best places to buy in a given area. Otherwise, you could be stuck with a property that you can’t sell or rent, which means that you have spent money without any assurance of a return on that capital. Those who are new to real estate investing may want to enlist the help of an accountant or financial adviser prior to buying their first properties.