Real Estate

Here’s Why They Say Location, Location, Location

What To Look For When Buying a House

Buying property or real estate is never for the faint-hearted, even if you’re a seasoned investor. Many property investors admit to using that gut instinct in their purchase decisions. There are so many variables that might affect the value of your real estate over the years, that experience rarely helps to foresee them all. So why do so many buyers rely so heavily on the saying location, location, location?

Where you buy is crucial – if you’re going to live there. You want a perfect view, lots of space, and a good looking home to generate that all important envy among your friends. You buy so you can fulfill that dream lifestyle you aspire to. Should those ideals apply to property investment, though?

Yes, and no. The point of any investment is to make more money than you put in. Property investments can be for the short term. Perhaps you take a doer-upper, tidy it up and rent it out or quickly flip it. Investments in land can take a little longer and a bit more investment. You might develop that land and create offices, commercial units, houses, or apartments. Properties you choose to use as a home are investments for the long term. All of these have one thing in common – you need to research the market thoroughly.

Market research is essential. When you look at a new geographic area, it’s essential you get to know as much as you can about the type of people that choose to live or work there. In fact, you need a whole profile so that you can create the type of accommodation that will appeal at a price they can afford to pay.

You can also invest on behalf of individual clients. If you have a creative client that’s looking for the perfect retreat, you might look for mountain land for sale. Many individual clients have specific requirements such as the number of rooms they want, the type of view they’re looking for, and the level of privacy they need. As a developer, you would then agree on a building design and collect a fee for your time and trouble. If you found the land, you might sell it to the client. It’s all about the marketing!

Property or real estate investments are often driven by local trends. This is why location, location, location is so important to consider. It goes far beyond sticking a pin in a map. Buyers need to know how long the commute takes from there. They want to know if there is space for the kids and the dog to play in the community. And they need to know that the community is well planned, safe and worth their investment too. What are property prices doing now? And how have they performed historically? The data you need here is on a local level.

There is money to be made in real estate, but there are also big risks if you rely entirely on your gut instinct. Do your homework, and determine how long you need to sit on such an investment to get you money’s worth.