Most people dream of owning their own home, but the process of buying a house can be daunting. There are so many factors to consider. But one of the most important factors is location.
OmniKey Realty of Plano, Texas, believes that location is one of the most important factors to consider when buying real estate. The right location can affect everything from the property’s value to its ability to attract tenants or buyers. Here are a few things you should keep in mind when evaluating a property’s location.
The Core Of The Matter
When determining the value of a property, location is everything. And we don’t just mean the city or neighborhood where the home is located. Take, for example, two identical houses side-by-side. Home A might sit on a busy street while Home B backs up to a peaceful park. Both homes are in the same city and have comparable square footage, but Home B is going to be worth more because it offers buyers a higher quality of life.
Understanding The Real Estate Language
Before we dive into the nitty-gritty of location, it’s important to understand some real estate language. The term “location” can refer to two different things in the real estate world:
- The actual physical address of the property.
- The surrounding area, which is often referred to as the “neighborhood.”
For the purposes of this article, we’ll be focusing on the second definition of location.
Proximity To Key Amenities
One of the most important things to consider when evaluating a property’s location is its proximity to key amenities. This is especially true if you’re buying a property that you intend to live in. OmniKey Realty believes people want to be close to amenities like schools, grocery stores, and public transportation. You’ll also want to consider the property’s proximity to things like entertainment and nightlife options.
The closer a property is to key amenities, the more desirable it will be. And the more desirable a property is, the higher its value will be. Proximity to key amenities can also be important if you’re renting a property. Tenants will be looking for properties that are close to the things they need and want. For example, tenants looking for properties in urban areas will be willing to pay more for a property close to public transportation than they would for property further away.
Appreciation Potential
One of the biggest reasons why location matters when buying real estate is because of appreciation potential. Simply put, this is the increase in value your property may see over time. Location plays a big role in appreciation potential because certain areas are more desirable than others. For example, investment properties in up-and-coming neighborhoods tend to appreciate at a faster rate than properties in more established areas.
Rental Potential
Another reason to consider location when buying an investment property is rental potential. OmniKey Realty believes that some areas are simply more desirable for renters than others. For example, most people want to live close to urban amenities like shopping, dining, and entertainment. They also want to be close to public transportation options. If you’re looking to buy an investment property that you’ll eventually rent out, it’s important to consider the rental potential of the area you’re considering.
Crime Rate
Finally, another important factor to consider is the crime rate in a given area. No one wants to live in an area with a high crime rate, and no one wants to rent in an area with a high crime rate either. Not only is it important for your safety, but it’s also important for your peace of mind. If you’re considering buying an investment property, look into the area’s crime statistics first.
It’s All About Accessibility
The Location also dictates how easy (or difficult) it will be for you to get from Point A to Point B. If you’re looking for a family-friendly neighborhood with good schools, you’ll want to be sure that the area is also accessible by public transportation or main highways. On the other hand, if you’re looking for a vacation home where you can enjoy peace and quiet, you might want to reconsider an area close to the airport.
Consider the Future
When purchasing real estate, you must consider your long-term needs and goals. For example, are you planning on starting a family in the near future? If so, you’ll want to make sure that the home you choose has enough space to accommodate your growing family. Or maybe you’re nearing retirement age and are looking for a place to downsize. In that case, you might want to consider an elevator building or a single-level home.
Final Thoughts
As you can see, there are a number of important factors to consider when choosing a location for your new home or investment property. Appreciation potential, rental potential, and crime rate are all important factors that can impact your decision. OmniKey Realty advises taking your time and researching before making any decisions.