Harold Samuel, a British real estate mogul, is often credited with coining the phrase, “There are three things that matter in property: location, location, location!” This expression is still widely believed to be accurate, but just how true is it? Let’s take a deep dive into the power of location and why it matters so much in the world of real estate.
The Importance of Proximity
How close a property is to schools, transportation, grocery stores, hospitals, and other amenities can significantly affect how much a potential tenant will want to live there. Of course, what a tenant wants to live near will depend on the person, but you can make some generalizations about what groups of people want. For example, parents with young children will likely want to be closer to a good school district with decent transportation. Younger adults without children may prioritize being near their job and fun activities. Once you have an idea of what tenants you’re looking to target, you can choose a location that suits their potential needs.
How Safety Affects Buying and Selling
In truth, everyone wants to live in a safe neighborhood, but some tenants value safety much more than others. Parents and seniors are two groups that tend to care about living in safe areas the most. Younger adults, such as college students and those entering the workforce, tend to prioritize convenience over safety. However, if someone has the means to do so, a tenant will almost always try to find the safest neighborhood to live in. The higher the crime rate, the smaller the net you have to cast, greatly affecting how fast you rent out your property and your overall asking price.
The Value of Good Neighbors
Even if your property is in a relatively safe neighborhood, that doesn’t necessarily mean everyone will flock to live there. You can’t pick your family, but you can pick your neighbors—at least to some degree! If a tenant visits the property and notices neighbors are messy, loud, or rude, it won’t really matter how safe the neighborhood is. Bad neighbors are likely to send an applicant running. Before purchasing a property, consider spending time around the neighborhood and getting to know the locals.
Of course, there are many other factors that you should consider when hunting for property to invest in, like the age and condition of the home and the local market. However, location has a lot of power in real estate, and it still matters just as much as Harold Samuel suggested back in the 70s.
If you’re having trouble finding the right investment property, or need help marketing, renting, or managing your property, contact Excalibur Homes today. We offer end-to-end real estate services and can provide you with your own personal real estate representative that can help you get the most out of your investment property.
