So you’ve worked on your smarts and saved some this pandemic. Now you’re eager to swoop in and buy a place to call your own: real estate. Before you get carried away, know that the more excited you become about your prospects, the less convinced you should be to buy. Why? Because an investment is not a decision of the emotions, it’s a decision of the mind.
And the three most important factors you should consider are location, location, and location. Indeed, we can’t overemphasize location. It can define your real estate venture like no other. Those who put their heart out of their sleeve and ignore the importance of location have learned the lesson the hard way.
The Power of Reverse Engineering a Location
There are many that play it safe. The prudent way to go about the location is to study it. Google can be a great ally in this matter. What’s the crime rate of the area, if any? Anything the area is known for? Anything that can raise a red flag?
There’s no question buying in a safe neighborhood is a good buy. It’s logical. But if you want to get more, there’s one thing you should factor in: change.
And this is where your reverse engineering skills can come in handy. To note, reverse engineering is to take an exceptional product (e.g., a laptop) and see how it works so you can create one for yourself. In short, you break down the product to know how it works.
In our case, what you’re looking for is a good neighborhood. However, know that exceptional neighborhoods will cost you. These places are usually priced top of the market.
A better way to do it is to be on the prowl for neighborhoods that may not be so good today but are getting there. This involves some risk. But if you see signs that the neighborhood has a great future then taking it is logical.
What’s the advantage of such a strategy? One word: price. Not-so-exceptional neighborhoods won’t fetch premium until they’ve shaped up. ; So, you get them on the cheap and you can profit a lot if you decide to sell later in time.
Think Millennials
Now, what has location got to do with millennials? Before you react, know this. Millennials represent 60% of the real estate buyers today. More than half of the total new home loans belong to the young sector.
COVID seems to have pushed the Millennials to new heights. A survey showed 75% have been able to work remotely. In a way, this has fired up the confidence of this age group, 63% of them are zeroing in on buying a new home.
Moreover, this has been triggered by the lowest mortgage rates ever, thanks to the pandemic. In effect, this has boosted a lot of activity in the real estate market which consequently saw the demand for space heighten.
To this end, ask yourself if what you’re about to buy is millennial-friendly? Should your location be so, then you’re looking at a property with a great future: a strong demand. Know that usually, it takes about 7 years for an average person to move. So, getting a property with your young buyer in mind will mean greater prospects for you when you decide to sell it.
Centrality
Are you left to fend for yourself when you’re in trouble? How far is a hospital? And how about the police? How far is civilization from you?
Remote locations are a no-no unless you’re planning to live as a monk for the rest of your life. Remember that you’re not only looking at the value of the property as a buyer but also as a seller.
Indeed, centrality is a key facet to look into when looking at the location of a property.
Check if schools are available. This is important as this is a growing consideration of millennials who want to know if their kids would be taken care of.
Then, there’s the commute. How far are you from the main road? That should be factored into the equation. Commuting to and fro work is a big part of the daily routine. Thus, a house with great accessibility will attract more buyers than those that will give you a hard time.
A good measure to know how much marketable a place is to know the people living there. How long have they been there? Is turnover quick?
Surely, there are a lot of things you need to consider when zeroing in on a property. But doing your due diligence pays off handsomely. When you do, you’ve greater chances of seeing your fortunes change for the better pretty fast.