{"id":6593,"date":"2024-09-11T13:41:15","date_gmt":"2024-09-11T13:41:15","guid":{"rendered":"https:\/\/sterlinghomesltd.com\/?p=6593"},"modified":"2024-09-11T13:41:15","modified_gmt":"2024-09-11T13:41:15","slug":"location-as-a-factor-in-real-estate-investment","status":"publish","type":"post","link":"https:\/\/sterlinghomesltd.com\/location-as-a-factor-in-real-estate-investment\/","title":{"rendered":"Location as a Factor in Real Estate Investment."},"content":{"rendered":"

Location is a real estate mantra for a reason, it can affect a property market value, positively or otherwise. In the real estate market, location is often referred to as the foremost factor to consider when choosing a property.\u00a0<\/span><\/p>\n

In this blog post, you will learn about the impact of location on your property value and investment returns.<\/span><\/p>\n

Property Location<\/span><\/h5>\n

This can be defined as the specific description of a geographical address or coordinates of a real estate property. It can also be referred to as the recognized address of a property. It can be classified into street numbers, city zip code, state geographical zone, etc.<\/span><\/p>\n

Importance Of Property Location<\/span><\/h5>\n

Property Value<\/b>: It is common knowledge that a property in an urban area is not valued for the same price as one in a rural area. For instance, properties in Ikoyi are generally more expensive than those in Shomolu, Lagos. Properties located in well developed areas with urban amenities and proximity to essential facilities will have more appreciative value.<\/span><\/p>\n

Holding\/Resale Value<\/b>: When you invest in a property with the intention to resell, the property location must be in high demand. For instance, in land banking where the property buyer holds on to the property for a while and resells. The property must be in a location with a potential development plan to get maximum value on the investment returns.<\/span><\/p>\n

Lease\/Rental Income<\/b>: A property located in a high demand for residential or commercial space will also have more value. For this to work, you must determine what your goal is for the property. You can’t have a residential property in an area that is best suited for a commercial outlet or industrial facilities.<\/span><\/p>\n

Individual Lifestyle<\/b>: This is more related to the socioeconomic status of the residents in such a location. <\/span>There is a common belief that people of different socioeconomic backgrounds tend to live in different areas. For example, in Nigeria, there is the <\/span>Island<\/b> and <\/span>Mainland<\/b>.<\/span><\/p>\n

Factors to Consider When Choosing A Property Location<\/span><\/h5>\n