Real Estate: Location, Location, Location

by : Lara Sawyer

That famous slogan expresses a reality that can not be ignored. The location of a property is essential when it comes to real estate investments. However, the use you plan to give to that property is also crucial for investment decisions. If you plan to keep the property and live there, location becomes a background variable and your particular needs and desires become fundamental whereas if you plan to resell the property location becomes critical.

A few days ago I met with my aunt and she kept complaining about her apartment. So, I paid her a visit and she had a beautiful apartment in Manhattan but far from the vital places of the big apple. She used to have an apartment at Park Av. and the 38th and she longed for it. The new apartment was bigger and more beautiful and when I pointed this to her, she answered: My dear, this is New York; location, location, location.

And that is exactly what we meant. Depending on certain variables that include the city, the purpose of the property and your needs, the location can become essential or not. It is you who needs to decide this.

My Place In The World

If the property is more your home than a mere real estate investment, even though location is still important, it is not critical. As long as there are means of transportation close to the property it will not matter if it is in the city center or in the suburbs if you are not always rushed due to your work or if there are proper and fast means to get to your job.

Thus, though you should not neglect location, you probably have other worries in mind since you are picking your dreamed home. Do not forget though that location is not just location. The property's location defines what neighborhood you will be living in, how safe you will be, how many parks you will have near to you, how many markets, shopping centers, hospitals, schools, etc.

When Renting the Property, Location Becomes Essential

Tenants tend to choose the property based on the location. They need properties close to work or close to means of transportation. Location becomes an essential variable to their decision and thus, when purchasing properties for renting, it definitely has to be your main concern. Also, according to the neighborhood, you will get to request higher monthly rent payments. Thus, location is not only the tenant's interest.

When Reselling The Property

If you plan to resell the property when better market conditions arrive or after repairing it, location becomes important as long as it determines whether the property is appealing or not. The new owner will be as concerned about other factors as you would be if you were to live in the property. Thus, the same definitions that applied to your dreamed home, apply to them. As opposed to tenants that worry little about the property because they do not own it and thus give more importance to location, for buyers, location becomes a background variable and other factors acquire more importance.