The old real estate adage “Location, Location, Location” always holds true! What exactly does the word “Location, Location, Location” say, and why is it such a significant quality in assessing potential future profits?
What Exactly Does “Location Location Location” Mean?
The term “place” refers to a geographical region that is in high demand. There are people who want to live there. Why is this so? The following are the factors that influence location:
The term “Location” refers to a geographical region that is in high demand.
The people who want to live there may hugely depend on these 6 key qualities, that you can depend on when searching for a good property deal.
What are the 6 Take-Away Qualities that We Can Depend On When Searching For A Good Property Deal:
- Quality School/College Institutions
- Low Crime Rate
- Proximity to Work Centers (Jobs)
- Proximity to Public Transportation Network
- Shopping and dining options are nearby.
- Proximity to Cultural Amenities
1. Quality School/College Institutions
One of the first questions we receive from potential customers and tenants is, “How are the schools?” To be honest, in Malaysia, the data that shows student scores is not available publicly yet, the news of the schools and reviews are publicly accessible on freely accessible on the Internet, especially on Google Reviews. Your Real Estate Agent will also point you in the direction of school-related websites and services.
2. Low Crime Rate
Prospective investors and landlords would invariably ask, “Is the neighbourhood safe?” Crime figures are now commonly accessible on the Internet. Many municipal police forces have crime statistics available on their websites.
3. Proximity to Work Centers (Jobs)
The proximity of the property to nearby employers is a critical factor influencing demand. Is the local labor market robust? What is the unemployment rate in your area? Your Real Estate Agent will be able to provide job information, and the Internet, of course, makes it very easy to check for employment records.
4. Proximity to Public Transportation Network
Is public transportation available in the city, such as a bus, subway, or train? What are the conditions of the local roads? Is there a lot of traffic on the road? Please bear in mind that congested roads are usually associated with a high rate of jobs. People are on their way somewhere! Check the traffic in the city during morning and evening rush hours, as well as on weekends, if you have time.
5. Shopping and dining options are nearby.
Rate shops and restaurants contribute to an area’s “livability.” We live in a “consumer-based” culture. We love shopping and drinking! We still list famous shops and restaurants nearby when we advertise a property for sale or rent.
6. Proximity to Cultural Attractions
Museums, theatres, zoos, national parks, and historical landmarks all contribute to an area’s “attraction.” It is a plus if a family is within 2-3 hours driving distance of these types of cultural amenities.
We got 3 reasons why real estate investors should prioritize location:
- Property is a heterogeneous asset. One property is not equal to even its side neighbor. Purchasing a property in a decent location increases the odds of earning consistent rental income in the long run.
- When you plan to sell your house, a good location increases demand, and increased demand can result in several purchase offers.
- If your property is in a good spot, it raises your chances of long-term steady appreciation.
Therefore, think “Location, Location, Location!” when evaluating the potential of a property.