When you are buying a property, you are also entering into a huge commitment with the place where it is located. The location of your purchase will have nonpareil effect on the future value of the real estate investment and affect your everyday life. Therefore, it is highly recommended to follow a cautious approach and consider several factors while determining the suitability of a particular location.
What if someone told you that the location of your new home has as much to do with its sustainability as the way it is being built? What about the “location efficiency” of the property? If this sounds news to you then you were surely missing out on one of the most important aspects of buying a real estate property.
So what is location efficient property?
You must have heard of energy efficient homes, but location can be efficient too. If the property that you have bought is at a place which is facilitated by rapid transit through broad transportation choices, has good concentration of retail stores, and an interconnected street network. With a wide range of transportation choice and a better connected road network, one can expect improved access to important destinations of concern, less time consumption in transit as well as less green house emissions and pollution for meeting everyday travel requirement. Such a place can be said to have high location efficiency.
Always try buying a location efficient property.
Geographic factors to consider
Your lifestyle definitely has a bearing of the place where you reside. So, if you have bought the property for the purpose of spending the rest of your life in it then the place better suits your needs and wants. Whether the neighbourhood culture matches your way of living, or the climate is to your liking or not are important considerations. The property shouldn’t be too far from where your near and dear ones currently reside and neither should it be at too much of distance from your current workplace.
Other geographic factors include the topography of the place. You should avoid buying property where there is a know earthquake fault or danger of floods, tsunami or other natural disasters.
A place can be characterized by different neighbourhoods, all following different culture and tradition. You should be buying a property at a place which is closest to your lifestyle and personality and makes you feel most comfortable. Buying a home in a good neighbourhood has its own benefits. This way you will make sure that whenever your friends and relatives come over to the place, they do not feel bad about it.
Buying a property in a crime infested neighbourhood will often cost you lesser as compared to buying in a place with a better record. However, living in a constant fear of the unruly elements or if one day you are a victim of unfortunate circumstances, no discount will be worthwhile. Besides, if you look at the property for a better valuation in the future, you would be grossly disappointed.
City versus suburbs
Most people would like to have a property within the city as it has all the amenities and conveniences that one looks for. However, buying a property in the city will often cost you two to three time more than buying the same property in a slightly suburb location or peripheral area. Moreover, with land becoming a scarce commodity in the main city, most of the expansion and commercial development gradually shifts towards the peripheral boundaries. Therefore, you can call it a decision of financial prudence to buy a property at two to three times less price in these suburbs and then sell it for higher price when these locations become fully developed.
While living in location efficient places can yield significant financial savings and health benefits, other geographic factors also play an important role in selecting the location of a property.
Author’s Bio: Saurabh Tyagi is a professional blogger. He pens his thoughts for leading online publications on topics related to career, technology and real estate.
To decide these kinds of real estate investments need to be part of your portfolio or not, you need to have a financial plan mapped with all your financial goals. If you are looking out to create a financial plan for yourself, then you may want to check our financial planning process.