The most important factor for your Property is its Location!
We cannot stress it enough, but the location of a property has a massive impact for both investors and end-users and here are some of the things to consider:
- Resale Value of the Property – Can I resell this property easily and at a higher value?
- Position of higher appreciation over a 5-10 year period.
- Lease-ability of the Property – Can it be rented quickly?
- Per sq.ft. profitability of a front or back facing unit – Can I earn more for my money if is a FULL sea-facing property vs. a partial sea-facing property?
- Demographics and trends within the area – Is there a shift that can impact the ROI?
- Ease of commute from work, school etc.
- Community amenities and accessibility – Does is have lakes, parks, malls, access to major roads?
- Demographics of the area – does it match the lifestyle you are looking for?
- Security of the community
- Can upgrades be made without much hassle?
- Views from the house
There is a lot to consider when it comes to the location of the property. It can be the overall area or district within a city; the community or the building within that area; the exact unit within the community or building. And each aspect has a monetary value attached to it. For example in the same building, you can be paying a higher price point for a unit on the 40th floor with the same view than that of the 1st floor. Furthermore, you can pay a slightly higher premium for a sea-view versus a community view. This is based on the perceptions and the value we collectively put on such factors when searching for a house.
In this case, a lot of people would like to pay that premium for a sea-view, 40th floor unit rather than a community-view 1st floor unit. This affects rental price points and the resale value slightly. It is important to understand the per sq.ft. price point for the units and ask questions to understand the variance in prices from your realty advisor or seller. Is it also something that you are willing and able to pay? As the right location for you maybe the wrong location for someone else. There are several factors that make a location, so it is advised to do your research and understand your own motivations before making the commitment.
You can also speak to a real estate advisor or consultant that you are in contact with, as they tend to be well-informed of the actual market versus just speculation. So feel free to ask our opinion on the real estate market and we can let you know more details based on which segment you are looking at. Feel free to arrange a call back here or chat with a specialist here.
Sign up to get alerts on our latest posts and feel free to share your comments and thoughts below!