Irrespective of the reason, you are looking to invest in a home that has the potential to grow in value as an asset.
Whether you are a buyer or a renter, you must, by now, have a good idea of where you would like to live. The area may have several draw factors – proximity to your work place, schools and medical facilities or simply the potential to appreciate exponentially.
No matter what the benefit of the particular home, you must not negate the importance of your location at any point. Here are five ways to evaluate the location of your potential home:
1. Research the Growth of the Location
Connect with a good real estate agent or do your own homework for this. Look into the growth of the location over the years. Has the growth been steady? Do real estate agents still believe in its potential to grow? Let your research go back at least a decade and look over the figures. Ignore the few small dips you see that may be market related.
There may be two outcomes to this – you may find that you have the perfect location that has all the potential to grow. Or, you may find that you have the ideal property, in an area that is virtually saturated and thus end up with stagnant growth rates.
2. Evaluate Amenities
Even if you are yet to start a family, it is important to evaluate the schools around you. These are details that come in handy when you plan a family. This is also important if you plan to sell the house at a later date. Families look for quality schools and this can be a huge draw for a potential renter or buyer.
Besides schools you will also want to look into medical facilities around you as well as your options for entertainment. If you have ailing members of the family, specialized care in the vicinity must be evaluated. Your social life will also determine the kind of entertainment options you will want around you.
3. Enquire on Job Opportunities
If the location you are evaluating is placed in close proximity to a commercial hub, this can open a world of opportunities. New job opportunities may come closer to home than before. This is also a factor that many people looking to rent or buy would like to ascertain.
Look into the current job market at the selected location. Also make enquiries on the newer companies or tech parks and the like that may be setting up here.
4. Check on the Number of Homes that are listed for Sale
It is important to know the number of homes that go on sale, on average in your location. This will help you understand two things – the first, if a property is truly great and appreciating in terms of value, then you will find only a few properties listed.
Alternately, more the number of sales signs, more you need to research into the feasibility of the location and what it may be possibly missing. A general rule of thumb –lesser homes on sale in a locality make better investment options.
5. Spend Some Time Experiencing the Location
It is important for you to get a feel of the location. Drive to your workplace and back in peak hours. Do a school run during the right times to see how long it takes. Make a mental checklist of all the amenities you like to have close by and go to each one of them and understand how they fit into your lifestyle.
Also evaluate connectivity to other parts of the city and public transport options among other things.An ideal way to summarize your evaluations is to compare 2 to 3 of the top locations on your list based on the above parameters and narrow down on your choice.
Once you are done evaluating all these aspects, it will become clear to you, if this location is the right one for you. Take the time out to do so, as a home is a long term investment of your hard earned money. It is also a large financial commitment.
- Irrespective of why you are buying a home, evaluating location is important
- Evaluate a location from the perspective of a buyer that may look to sell in the future
- A location’s growth pattern is an ideal benchmark of its quality
Suhail has 5+ years of experience in the Real Estate industry. During the course of his career he has interacted with hundreds of home buyers and helped them choose their dream home. His expertise lies in understanding customer needs and guiding them through their home buying process.
Suhail Ahmed is a commerce graduate from Bangalore University and is currently working in Vakil Housing as a Property Advisor