Tag Archive | "desirable kind"

Don’t Overlook Location When Investing in Real Estate

Most of us have heard someone – often our parents, but probably more often a character in a TV show – describing another individual as being “from the wrong side of the tracks”.

It is one we hear, and repeat, without necessarily giving any thought to what it means. We as humans, have a tendency to do that – but what does it mean?

Well, to make a long story short, it was realized some time ago that people who could afford to choose where they lived would pay for a house in a location that was peaceful, clean and sedate.

Too much through traffic means a lot of pollution, and can also cause structural faults, and also an increased number of strangers – something we were always taught to dread.

Poorer neighborhoods, with higher crime rates and naturally a “less desirable” kind of person living there, as a result, were often positioned close to public transport links such as railways and (in larger cities) airports.

Anyone living in that area would be considered bad news by the richer families who intended to maintain a spotless reputation – and if the son or daughter of a rich was seen to be consorting with someone from those areas, that could mean social suicide.

This kind of reputation still persists for many people. However, there are also advantages to living and buying in what might be considered a poorer, grottier neighborhood. Prices are lower, but sound investment does mean that you can still make a decent profit. After all, proximity to public transport links also has its benefits.

Location, Location, Location!

There is a common mantra among real estate professionals and investors which is simply the word “location” repeated three times.

The thinking behind this is that, when it comes to making money in the world of real estate, the most important thing is where the property is located.

The second most important thing is, also, where the property is located. This is also the third most important thing. Essentially, location is important when it comes to making a success of real estate investments.

Of course, most people already know that, so why does the business make such a big fuss about location? It’s like making a big issue out of breathing, isn’t it?

Well, not quite, because many people do not realize just how important location is, how fine the margins are and how big the difference can be between two houses which are in plain sight of one another.

It’s not just about what town the house is in, it’s about what street, the exact position within that street, and what you can see from there.

It may be tempting when listening to a friend talking about the great deal they got on a house in a certain area, to think “well, I know for a fact that there is another one up for sale there – I can buy it for that price and raise a significant profit”.

This may not actually be the case, however. The position of a solitary tree, church tower or bend in the road can have a pronounced effect on what you can expect to pay and what you can expect to receive for any real estate – so do your homework.

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