When there is a real estate boom, most property buyers tend to consider buying almost any property that hits the market. This can be a risky proposition in the long run. It won’t seem to matter much when the market is stable but over a period of time, only property owners who chose the best location of a property will hold the most valuable property with a much slower rate of depreciation. The difference in value is majorly due to the location of the property.
Importance of Real Estate Location
While buying a property it is worth remembering that no matter how much you like the villa or condo you are also buying a plot of the land. The property that is currently standing on that land can be renovated, remodeled, even demolished, and redeveloped into a completely new structure. However, the one thing you cannot change is the location of the land it stands on. So, you are actually investing not only in a property but also the location that it is situated in. A good or bad investment largely depends on the neighborhood of a property. This implies that the location is most often the single most important driving force behind the property’s value.
It all boils down to the principle of demand and supply. Real estate supply in a great location is limited by the number of properties in that location.
Difference between Good and Bad Location
Many factors are worth considering when you look for a property at a good location, however, several important factors are often overlooked while picking a good location.
Here’s a list of some of the major factors you should keep in mind while looking for a property in a good location:
-Firstly, most property owners and tenants prefer a location that is well-connected, has decent transportation facilities, good schools, and a feeling community. A secluded location without much connectivity and development around it might not be worth as much as you would think.
-The second most important factor that one needs to acknowledge is that a good or bad location will not remain that way forever. Cities, towns, and even communities are continuously changing and neighborhoods can transition from a less desirable to most upcoming within a few years.
-Actually, this is probably the single most crucial factor one should consider when assessing a location. Don’t go by what a neighborhood looks like now. Evaluate what it will be most likely to evolve into in a decade. If a major developer has started a development project in an affordable neighborhood, it is often worth buying in that location. Likewise, upscale neighborhoods seldom make for great investments because the properties there already are expensive due to their high-demand location.
5 Important Factors of a Good Location
A good location can mean entirely different things to different people, however, some common factors determine a property’s value. Your personal needs and preferences might vary from others and you might not be able to buy a property with all these factors. But when you’re looking for a new property to invest in, it would help to keep the following factors in mind.
1. Central Location
A location that is close to all essential lifestyle conveniences such as the airport, shopping centers, schools, hospitals, and entertainment hubs is highly preferred. Not only does it make life easy for those who live in the property but it also fetches a great ROI in the form of attractive rental income and property appreciation.
It is important that the location you choose for your property is well-connected with good roads and has plenty of transportation options. A property that is difficult to reach will always have fewer takers, both in terms of rentals and resale.
A neighborhood that is safe, friendly, and has neighbors with who you would like to socialize is where most people want to live. An area that is high in crime rate and has difficult people living around you is highly undesirable. Beautiful surroundings also matter a great deal.
4. Noise and Pollution
The location of your property needs to be relatively quiet. If your property happens to be on a busy road or close to a dusty highway, or say it is right next to an industrial unit that emits undesirable chemical smells, not only will living in the property be undesirable but it will also be difficult to sell it or get a good price on it in the future.
5. Growth and Development
It is not just how many amenities your location has presently that matters, but also the future ones. Expansion plans for new schools, hospitals, public transport, and other infrastructure can hugely improve the value of properties in the area. Commercial development improves property values to a large extent. When you are looking for a property to invest in, try to find out if there are any new public, residential, or commercial development projects that are being planned to understand how these additions might affect the demand of the areas in the surrounding.
Location is not always subjective but it is actually based on a few fixed sets of criteria. When you look for a new property to invest in, keep in mind that the neighborhood is not just desirable to you but has practical qualities such as attractive amenities, good schools, safe streets, and if possible beautiful surroundings, that will ensure that your investment appreciates over a period of time.
All of SKHAI’s properties are located in prime yet tranquil areas close to a host of lifestyle amenities, surrounded by 5-star brands to provide an enhanced lifestyle and great returns on your investment. And above all, they are situated in the most exotic island destinations with spectacular views of the sea and lush hills. If you are interested in an investment property in Phuket or Koh Samui, connect with our team at SKHAI to know more about our attractive deals on some of the most spectacular properties in Thailand.