Why Location, Location, Location Is Most Important When Buying A Home
What’s the most important thing about real estate? Any Realtor will tell you “location, location, location.” Believe it or not, the location of a home is the single most important factor to consider. Let me explain why.
You might have found a beautiful house with all your required preferences, but its location or neighborhood was a turnoff. As an investor, you understad that location translates to a tangible return on your investments.
How location is important in real estate
A perfect location will generate demand, leading to competitiveness, hence profits for your property. In Kenya, properties in a prime areas like Karen, Ngong, and Kileleshwa will be more expensive than in Githurai 44, Mwiki, and Juja.
Urbanity is key. A property located in the urban center is more valuable and profitable than a less-developed town. Notably, properties in the city’s outskirts are more affordable; however, this might see you to incur costs and future losses due to low demand for your property.
But also, it’s crucial to ask yourself where the area will likely be in the next five years or so. It can be worthwhile to buy in a ‘bad’ as you are more likely to benefit from value appreciation. Meaning, it’s more valuable to focus on the area’s future potential than its current status.
Accessibility to amenities, security, neighborhood accessibility, and appearance should be considered. A buyer will need the house to be close access to amenities and transportation options. This means relatively proximity to restaurants, grocery stores, dry cleaners, shopping, and entertainment. Home near important roads and public transportation options have a higher resale value as they make commuting seamless.
Another factor you might want to consider is the environment and landscaping. A good environment will improve your house’s quality of life and desirability to tenants and investors.
Distance: How far is the school, hospital, entertainment hubs, daycares, and markets from the house’s location? This is especially true if the city you live in is family-oriented and has school-age children. Remember, though, that even if you do not have school-age children, the quality of the schools remains an important consideration.
If you consider these key factors for your home, you can be assured of profitable returns on your investment. Congrats! Now it’s time to start planning that move.