How Does Location Play A Role In Real Estate?
When you go to buy a house, you know there are numerous factors influencing the price. I won’t list them all, but one of the most crucial is the location of the property. Everyone knows that the location matters, but what does this mean?
Specifically, how do you determine if a house is in a good location or not? A lot of it comes down to common sense, but there are some intricacies that confuse things a little bit
Central locations in big cities are sought after
Houses in big and popular cities are always going to be more expensive than ones in little towns. More to the point, the centrality of the location also plays a big part. For example, an apartment right in the middle of NYC will be more expensive than the same one on the outskirts. It’s all to do with convenience and how close the property is to the inner city. As such, it opens up more work opportunities, traveling around the city is easier, and so on.
Houses in new developments tend to be more expensive
If a property is located in a new housing development, then it’s usually more expensive than others. This is because it’s going to be close to lots of new and exciting developments in the area. As a result, developments can turn some locations into far more desirable settings than they used to be. If you take a look at California, there’s no coincidence that the Key Largo real estate game is booming as of late. New developments are popping up all the time, making the area far more sought after for home buyers.
Proximity to schools is a big factor
A lot of families buy homes because they’re close to really good schools. In fact, this is one of the main factors families will look at when buying a home. Therefore, houses that are close to schools will end up rising in value. By contrast, ones in an area that’s not near any schools will drop in value.
Safety has a massive bearing on the location
Safe locations are always deemed more valuable than others. Who wants to live in an area that has a high crime rate? Nobody. As a result, these homes are seen as less desirable. So, the entire area will rarely see people willing to move there. Thus, the house prices fall as this is the only way to attract people to the town/city. If you want to move to one of the safest cities in the country, then be prepared to pay more money!
In essence, location plays a vital role in the world of real estate. There are lots of things to consider when determining if a location is desirable or not. If it is desirable, then this means more people want to live there. So, the natural course of action is to raise house prices. Why? It’s a simple case of supply and demand. There’s a limited supply of homes, but a huge demand for them, so prices are raised. Always take the location of the property into account before you buy it!
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