Where you choose to live is one of the most significant decisions you’ll make when buying a new property. Why? Because location plays a huge role in both the satisfaction you’ll feel in your new home and the value of your house and land. Location, location, location is an old adage for a reason, after all.
When looking at location from purely a valuation standpoint, there are some crucial things to remember about how where you choose to buy will impact the bottom line of your investment.
Local Amenities
Areas with a lot of amenities will be in higher demand because, generally speaking, people like to be near all the amenities they’ll need to live their lives. Properties near places such as hospitals, schools, shopping centers, and public transportation will all increase value because convenience is more attractive to the general population. That increased attraction drives more demand and, thus, higher values.
Safety and Crime
People want to know that when they’re headed home from work or out with friends, they’re safe in their own neighbourhood. Places offering lower crime rates and higher levels of safety will always be worth more because, while you can’t put a price on safety, you can on the peace of mind that comes with living in a low-crime area.
Proximity to Transportation and Employment
Being close to employment opportunities and transportation is high on every potential buyer’s list. People won’t actively choose to be stranded waiting for public transit, nor will they purposely move hours away from their office. Because of that, in areas where transportation and employment are high, values will also be increased.
The Local Community
Communities and neighbourhoods considered “high-quality” will also be regarded as high-value because a good neighbourhood is highly sought after. When there is more demand for a specific area of the city or town you’re looking into, you can expect to pay a little extra for that local community.
School Districts
Many families looking to buy homes want to get close to the school of choice for their child. Areas with well-known school districts that rate higher on the scale of educational experience will always go for a higher dollar value than those with more questionable educational institutes. All parents want the best for their kids, and when a school district is highly sought after, the properties in that area will be as well.
Environmental and Cultural Factors
People want to live near natural beauty and manufactured cultural hubs. Having an open ticket to do and see all the wonder your local world has to offer in one area is a great way to get people interested in living there. Because of that, places close to bodies of water, museums, and other highly historical areas come at a premium.
Current or Future Development
Lots of areas are continuing to be built up each day. In the regions that promise improved infrastructure, such as better amenities and revitalization of the neighbourhood, the value of homes will be higher. Growth potential is a huge factor when location is involved.
Knowing how location factors affect property values won’t change things, but it can arm you with the tools you need to know what you value most and how much more money you’re willing to spend to meet those needs.