Location, location, location.
It means absolutely everything in the big wide world of real estate. Two identical properties can be listed on the market with a complete disparity in their sale prices. One is worth two or even three times the other, despite them being identical.
Why? Because Property A is in a prime location while Property B is not.
If you don’t believe that the location of a property is important, look at the various new developments out there. This is the perfect case study because developers will literally build the same houses with the same specs, but the values will differ based on where they’re located.
This begs the question: what determines a prime real estate location?
The popularity of a city or town plays a big role in the property market. Here, we’re talking about how popular it is in terms of tourism and work. Are there loads of people living here or commuting here to work every single day? Are there plenty of business opportunities and jobs?
At the same time, does it attract lots of tourism? This is why many major cities are deemed prime property locations. They’re super popular, so house prices always increase to match their popularity. You can make a fortune renting properties out to workers or to people looking for holiday accommodation.
Similarly, modern and developed areas will attract more attention than places that are outdated. If somewhere hasn’t seen any new developments or investments in the infrastructure for years, it won’t be a prime place to invest in property. Sure, house prices will be low, but the demand for them is also at rock bottom.
We have seen countless examples of people like Paul Ognibene working on developing rundown areas and creating emerging neighborhoods for people to live in. These developments modernize places and make them more exciting. In fact, an emerging neighborhood is the definition of prime real estate as it is currently still affordable, but with huge potential to become extremely expensive in the future.
Lastly, what else is there in the area? Houses and modern property developments are awesome, but what else is there for residents to do? Places with lots of shops and entertainment sources are going to be popular. Areas with lots of green spaces, parks, hospitals, doctors, dentists, and so on, are also very popular.
The more amenities a location has, the better it will be for investors. Again, it ties back to the initial point about popularity – the place has things that encourage people to live there or visit it regularly. This creates a thriving economy, meaning house prices keep on rising.
Identifying a prime location for real estate is just the first step. The next is to figure out the best time to act. Ideally, act as soon as you have found somewhere that looks fantastic for property investments. The earlier you get in there, the more potential there is to make money. If you delay by as little as a year, the value of a property can increase exponentially!