Landlord Blog

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Why is Location Important In Real Estate?

Investing in real estate should not depend on your budget alone. It may be wise to invest within your financial means, but factors like location, amenities, and property size are all critical for the future value of your investment. Location, in particular, is paramount to valuable real estate. 

But what makes location so important in real estate?

The right location will give you close access to amenities and transportation options. Furthermore, it will make you feel safer and more secure. You wouldn’t want to live in a neighborhood that doesn’t meet your expectations.

To make good with your investment, consider these five location factors before purchasing a new home. Read on.

1. Quality of Neighborhood

Choosing a quality neighborhood plays a significant role in making your living environment more desirable and maintaining the resell value of your property. While you can’t change your neighbors, you can get to know the kind of people living in the area first before buying a home.

Spend ample time in the neighborhood and get a sense of what it's like to live there. While it’s a matter of preference, overall, a peaceful and friendly community is beneficial to both resell value and your living conditions. 

2. Amenities around the area

When we say neighborhood, it’s not only about the people around, but it includes nearby amenities like restaurants, pharmacies, schools, and public transportation. These places should be accessible from your home location, but not too close as to cause a disturbance from the loud noise of the busy crowd. You or your future renters (if you plan on running a rental business) should still feel at home and be well-rested at night.

Furthermore, an area with enough parking spaces and parks for people to stroll and relax can also be an advantage. A location with these amenities is more attractive to possible tenants.

3. Future Development

Check for possible development within the property. Is the nearby area favorable for developing new commercial buildings, hospitals, or restaurants? A progressive district tends to increase a property’s value over time. Find a location that allows for future development and see a higher return on your real estate investment.

4. Safety and Security

What is the crime rate within the vicinity? The location should be free from crimes like robbery and killings. Aside from reselling value, you should also consider your safety and security.

Inspect the property first — building-wise, materials used, and durability of the structure. If possible, fire exits, elevators, and ramps should be available. Moreover, your property should be flood-proof and earthquake-proof during natural disasters.

5. Lot Location

Lot location refers to the physical location of your property. You need to know where your house is situated. Is it in a busy district where traffic sucks? Or is it around the corner of a quiet block? Does it have a good view? These are only a few of the many things you need to consider when buying a house.

Buyers sometimes neglect the importance of lot location over something else. However, keep in mind that this will determine the value of your property now and in the future.


Buying a property within the right location is more important than you realize. Do your research and try to compare different real estate locations. You may list the pros and cons of some properties as references.

Remember, the real estate location should appreciate its value over the years.

Whether you decide to make your property a residential home or open it for rent, at least you know it has good future value.  

There’s nothing wrong with choosing a property you feel most at home with, but considering the factors listed in this article will truly make your real estate investment worthwhile.