“Location! Location! Location!” is the age-old maxim in the real estate industry. However, very few investors understand what ‘location’ is really about.

When investing in real estate, one of the key considerations is location. Other factors such as property valuation, leverage, cash flow, profit, and investment horizon are understated in comparison. As a result, when the real estate market is booming, buyers often select any property on the market but those who invest in the best locations are the ones who get a return on investment and a lower depreciation quotient.

When it comes to investing, do not get carried away by high-priced locations, as this means they are not ideal for generating a profit. Conversely, do not fall for low-priced properties in moderately-priced areas either as they too might not generate a good return. The importance of location cannot be overstated as, in a single city, investors can throw all their money into certain neighbourhoods while completely avoiding others altogether.

As a real estate investor, some of the key questions to answer are:

• Are you trying to buy a home or book a profit?

• Are you looking for a location that offers seasonal rentals?

• Are you searching for a property that will provide you with rent throughout the year?

Once you decide on the purpose of investment, keep in mind the following key factors concerning the choice of location:

1. Central Suburban Areas

Residential areas in the innermost suburbs of a city generally carry a hefty price tag and do not make for good investments. However, as you move outwards, the price of housing begins to drop in comparison. When a city begins to attract an economy, its population burgeons, resulting in the inception of many new suburbs, comprising residential and commercial properties, as demand for housing and workspaces increases. But when the economy dries up, what follows is an exodus that leaves the outlying suburbs with a severe depreciation in terms of property valuation. Factor in this risk when you consider an investment.

2. Good Future Prospects

When gauging a real estate investment, check to see if the locality – where the asset is built – will receive any new civic development in terms of commercial and residential projects in the future. If the government plans to invest in infrastructure in the area, it should be a sign of good things to come. In addition, look to see if the government plans to build transit corridors and smart cities in the district. When assessing a property, do not base your decision on how the area looks now, but consider what it will look like a decade or two decades from now.

3. Access to Amenities

When looking for a property, check if the district has amenities such as schools, hospitals, markets, malls, restaurants, movie theatres, and emergency services that make a property attractive to potential tenants and future investors. Check if the area has green zones and whether the local municipality has taken the trouble to work on greenery in the area. Ideally, the amenities should be within five to seven kilometres of the asset. It is not recommended to purchase properties in the immediate vicinity of such amenities as that would result in exposure to noise pollution and heavy traffic, thereby bringing down the valuation of the asset.

4. Quality of the Apartment or Villa

One must also consider the quality of the property in terms of dimensions and amenities within the complex. Dimensions cover the number of bedrooms, floors, house layout, etc. While amenities include the likes of gyms, gardens, and swimming pools to name a few. You could also conduct a background check on the real estate developer to examine their track record; this will ease some of your anxieties.

5. Access to Transport

Ensure the real estate asset you are looking to acquire is well connected to established transport routes. If the property is too far from highways and tucked into a remote corner of a suburb, tenants will find it hard to commute to work. Also, check if the property is well connected to public transportation.

The Indiassetz Advantage

As you might have now guessed, making a real estate investment requires thorough research on key factors associated with the location of a property. It then makes sense to turn to a real estate advisory firm to aid you in the process of choosing the right property. Indiassetz, positioned as a real estate banker, offers the following range of services:

• Legal Assistance

• Financial Assistance

• Interior Project Management

• Rental Services

• Portfolio Advisory

• Property Management

Indiassetz takes the burden of choosing a location off the investor and provides an end-to-end, comprehensive service to clients looking to invest in Indian real estate.

We manage your Real Estate,

Totally and Completely