If you follow property and real estate at all, you probably understand the term “location, location, location” as one of the most important aspects when you’re looking for property.
And thinking about the here and now, the location might look great.
But, have you considered this one thing that can really scuttle your investment plans?
That consideration, and it’s a big one, is the future of the property’s location.
A lot of people overlook this, but it’s super important because it can have an adverse effect on your investment.
There are 3 aspects of a location’s future you should think about:
- Is there an increasing supply on the horizon?
An increasing supply of property can negatively impact the market because it tends to keep a cap on price growth.
New supply is often the result of new housing estates going in.
Or it could be medium to high-density buildings going up in the area that was a little bit unexpected.
You want to make sure the market isn’t going to become saturated with new properties and stunt the price growth of your own.
- Are unemployment rates trending up or down?
If unemployment rates in the area are increasing, it could indicate the area is becoming a little bit unsavoury.
That can mean a decline in growth rates, which of course negatively affects your investment.
It can also impact the type of tenant that you’re going to get into your property.
- Is new infrastructure planned for the area?
We usually talk about infrastructure like roads and railways as being really great things for an area.
Many times, they are.
But, there is such a thing as being too close to infrastructure.
For instance, if a property is right up against a new highway that’s being built, the noise could be a real issue for the occupants.
And that can have a detrimental effect on the price of the property itself.
So, if you’re looking at a property and keeping “location, location, location” in mind, please make sure you explore this all-important consideration – the future of the area.
Do that, and you’re standing your investment in good stead.