In order to make your real estate investments successful, you must keep location in mind. Yes, it may seem cliche, but the location is still a critical consideration when purchasing real estate because it has a direct impact on how well the property does as an investment. Here’s how to use location to your advantage when buying investments.
Consider the target tenant for your investment. Then, consider what that person needs in a home location. Do they need to be close to amenities? What are their shopping habits? Are there shops to accommodate them? Do they need excellent schools? Libraries? Some of your tenants may rely solely on public transportation. How close are you to trains, buses, ride-share hubs, etc.? These are but a few questions you should ask yourself when choosing a property.
Next, consider where the excellent schools are in your area. Schools may not appeal to all of your potential tenants, but they are important in the overall value of the home. Being in a top-rated school district or near top-rated schools makes a home more valuable. Don’t forget to consider plans for future schools or school upgrades, because investments should be long term in nature.
Is the home near shopping and dining options? Will the residents have easy access to a grocery store? Does it have parks or recreational opportunities nearby? Most of the time, tenants or buyers want these important amenities within a five or ten-minute drive from their house. If you can find an investment property near local amenities, it will be more valuable than one far from them, particularly if you’re going to use it as a rental.
If your city has a good public transit system, consider investments with easy access to this. Not all cities do, but this can be a major perk if yours is equipped with one. People who can use public transit can leave their cars at home, and this can help them save money. For some, this is a feature that they hope for when choosing a home to rent or buy.
Investing in real estate requires the right strategic planning. To make sure you are ready, research location well. Finding a great property in a great location will help you find investment success.
I'm John Mahan, Sales Associate with William Raveis Real Estate, Harwich Port Office.
Throughout his childhood, John Mahan spent summers on Cape Cod at his parents’ home in Dennis Port. His intro to the Cape was, as he puts it, when his parents “carried me down the stairs at Sea Street Beach when I was a week old.” With a lifelong connection to Cape Cod, it seemed only natural for John and his wife, Mary, to move to Harwich – where they still reside – with their two young children in 1996.
Prior to moving to Cape Cod, John lived in the Worcester-Auburn area where he worked for Mass Electric for 10 years and was a member of the International Brotherhood of Utility Workers. When John and his family moved to the Cape, he worked at NSTAR for six years.
John began his career in real estate in 2002 when he joined Team Waystack Realty in Harwich Port. He has been a consistent top producing realtor in the Harwich area for the past 20 years. John’s approachable demeanor, combined with an integral understanding of the Cape Cod residential real estate market, have allowed him to build trusting, long-term relationships with his clients – both sellers and buyers.
