In the real estate market, a good location matters a lot but cannot be undermined. It is the most important feature of real estate property investment. For choosing property location, we must consider which location is good and which is not. For your sake, we are going to discuss the factors that make a location the best for profit. Read this comprehensive guide to help you choose the best property location for investment in Pakistan. Let’s discuss the factors.
Importance of Choosing Property Location in Real Estate
The location of a house has a huge impact on its value. The areas having high-quality amenities, low crime rates, and good educational institutions see higher property values. Similarly, the properties in less developed areas may face a decrease in value. Therefore, investing in a property in a prime location will bring profit faster.
Moreover, if you choose the prime location, it impacts your daily life a lot. Consider how far you can travel for your work, education, or hospitals. Another essential point is that being nearer or not makes a big difference in your life; if you are travelling an hour or so to get to your gym, it will take a toll on you.
The profitability of your property investment heavily depends on where it is located. A good location guarantees higher demand, which can translate into better resale value and an upgraded lifestyle. When you decide to sell your house, a desirable location can make your property in demand, resulting in quicker sales and good ROI.
Unlike vehicles or stocks, real estate investment in prime locations is more stable in value. The value of a well-located property is less likely to decrease dramatically, making it a secured investment.
How to Choose the Best Location for an Investment Property
Numerous factors come into play when selecting a property investment. A good location can mean different things to different people. However, there are objective factors that estimate a home’s value. It depends on your personal needs that you might comprise with some of the factors listed. That is fine because a home is more than just an investment but a place to live and thrive.
When you are looking for some properties or homes, pay attention to nearby amenities. Most buyers want convenience stores, entertainment, dry cleaners and more. Consider roads, trains, and public transportation like bus stops, public bike-share locations or train stations. Proximity to amenities will improve the value of the home.
Next time when you hunt for the best properties, keep these top factors in mind.
1. Centrality
Where you choose to live in an urban area or a town will affect how much you pay for your property. Major cities like Karachi, Lahore and Islamabad that are highly developed and don’t have much room for more growth have higher prices. The cities that have too much room and land to expand have lower rates. When cities experience a population exodus, it is outlying areas that mostly tend to suffer the most declines in property values.
Tip: Research if anything is going to change the area in the future, like any planned construction, new housing or developments. A location is ideal if it undergoes sweeping changes in the future and these could be very beneficial for the area.
2. Neighbourhood
The neighbourhood that appeals to you will definitely be a matter of personal choice. However, a better neighbourhood will have some critical factors in common: accessibility, amenities, and appearance. Your neighbourhood may also hint at the size of the lot on which your home is built.
Regarding accessibility, you must look for a neighbourhood near major transit routes of cities that has more entry points. Commuting to and from the office is a big part of many people’s days. So a house with easy access to public transportation and roads will have more value and demand. All the essential amenities make a neighbourhood ideal for investment and also living.
3. Development
Choosing a property location with the present amenities is not enough. Future amenities matter as well to consider an area for a plot. Plans for new hospitals, schools, public transportation, and other civic infrastructure can improve the property value dramatically.
Moreover, commercial projects and developments can also raise the value of the property. When you are shopping for your dream house, try to research new public, residential and commercial developments.
Tip: A neighbourhood with a low crime rate attracts buyers a lot and is a safe place for outdoor activities.
4. Plot Location
If you choose a house that is located on some busy road, then its price might get lower. Because people don’t like too much noise or busy road hustle. Similarly, if the house is located near a commercial area where stores, marts, and gas stations are convenient.
A house with an attractive view or near some green space is more valuable because it brings calmness. If your purpose is to live in the property or rent it, it is important to consider these factors while choosing a property location.
Should you Buy a House Without a Realtor?
You are not bound to have a realtor for buying a property for yourself. However, it is recommended to have a good local realtor. He can help you learn more about the location if it is new to you. They can also answer questions about local events, schools, neighbourhood safety, and the community.
If you are buying a house in your hometown or an area where you have lived, then you can skip consulting a realtor. Overall, it is possible to buy a property without any property dealer but you must be prepared to do your own research about the location. You will have to do the paperwork, research, and negotiation on your own with your seller.
Here are the top cities for foreigners and Pakistanis to invest in the real estate sector.
Lastly,
Location isn’t entirely subjective but it is based on a static set of criteria. When you set out to shop for a new property, ensure the neighbourhood isn’t just desirable but has objective qualities such as good schools and amenities that will ensure your investment is worth it. Consult the best real estate developers to know about the most attractive properties near your areas of interest but at affordable prices. Union Developers will guide you thoroughly on where you can invest and where you can have affordable price options.
