LOCATION! LOCATION! LOCATION!
You might have heard on several occasions that the most important factor to consider in real estate investing is ‘Location’ but what does that really mean?
“Location, location, location” is a common mantra in real estate. And it’s good advice—except for one thing: Most people have no idea what it really means. The concept of Location is unique to every investor depending on what one is actually hoping to achieve from the investment. In fact, certain locations known for high rent or property purchase do not necessarily translate to a great value for your investment. However, there are a few parameters that you should consider in the location of your investment:
Development
It is not just the present amenities that matter, but future ones as well. Plans for new schools, hospitals, public transportation, and other civic infrastructure can dramatically improve property values in the area. Commercial development in the area can also improve property values.
Resale Potential
It seems odd to think about selling down the road when you’re just thinking about investing, but resale values are important consideration for investors who might want to dispose of a property in five or 10 years. Your real estate broker can help you determine average prices for your target neighborhoods.
Supply and Demand
One major factor that one has to consider when choosing the location where to make an investment is the economics of demand and supply. Predicting and investing in a location that has a good ratio of demand and supply is what makes long-term real estate investors successful. Here you will have to weather the ups and downs that are a characteristic of the real estate market so that you wait for a good market that is located in a proper place to sell their property.
Accessibility to transportation routes
If your investment is located within a big city like Lagos, the further the property is located from mass transit the less valuable it will be. This is why you are supposed to choose a good location which must be close to such amenities and hence enable one have easy access to public transportation.
