Location, location, location: Why it matters
When picking a place to build or buy a home, location is everything. Everyone’s heard the notion of “location, location, location” and there is no clearer demonstration of its important than homes. When the time has come for us to focus on how we’ll invest, purchase or create property, we need to begin considering just what this means for us.
Why location matters
Property is not created equally. Factors as vast as climate, foundation type and view all factor into what makes a specific location valuable. Whether or not we agree with marking property value higher or lower is irrelevant: it’s simply facts.
Whatever the reasons are, we should recognise these as reality. As Money Instructor notes: “Choosing the right location matters because it has implications for two significant areas: quality of life and resale value of your home.”
It’s unlikely our first home will be our last, which means we need to care about how it will sell in future. But of course, even for the immediate present, we should be concerned about how the location affects our quality of life.
Realities of living
Will our homes be close to businesses or more residential? Will these homes be far above sea level or close to the ground? These are factors which have an impact on everything from our health to views of the ocean. People prone to poor health will struggle if they end up in homes with fluctuating temperatures, for example. This must be factored into what we choose and the value, whether personal or financial, we place on our property.
The impact of business is another major factor when we begin considering property finance for homes. Land is more expensive in business districts, since owners can afford to charge richer businesses higher amounts. Companies also prefer operating out of areas that tend to be more developed, since it usually comes with technology benefits (for example, they will get new cables first).
Even living close to famous stores can benefit your business. In America, for example, it’s frequently noted that living close to Whole Foods store benefits a home’s value.
What makes property value drop
As we’ve noted, there are plenty of factors increasing the value of property. This also means the opposite. Factors we often overlook could end up having a major impact in future. Speaking to Business Insider, appraisal Institute President Richard L. Borges says:
“I’ve seen many situations where external factors, such as living near a bad neighbor, can lower home values by more than 5 to 10 percent… Homeowners should be aware of what is going on in their neighborhood and how others’ bad behaviors could affect their home’s value.”
Other factors we might overlook negatively affecting property value includes bad schools, awful billboards and unkempt grounds. We must be smart about home buying and think wider than we normally would.