Location, location, location!

Posted on November 26, 2010
Filed Under Real Estate Investment | Leave a Comment

Real Estate Price Index

If you’ve read up about real estate, then you’ve certainly heard someone say this before – “Location, location, location!”

The first cardinal rule of buying real estate is to choose the right location. This rings especially true if you are a real estate investor. If the neighborhood is deteriorating, the value of your property will decline. You will also likely get low rental rates, bad tenants, and poor resale value. Even if you buy the best property in a bad location, your property’s values will just be dragged down when the neighborhood goes to hell.

On the other hand, if your property is in a neighborhood that is improving, the value of your property will appreciate over the long term. You are more likely to get tenants who pay on time and who can afford higher rental rates. And the resale value of your property will likely be higher than your purchase price.

In short, a bad location for your property will get you:

  • low rental rates
  • bad tenants
  • low resale value
  • headaches galore

In short, a good location for your property will get you:

  • high rental rates
  • good tenants
  • good resale value
  • peace of mind

So before you buy that property, think “location, location, location!”

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Real Estate Price Index