Location is a decisive factor in the price of a real estate property. Do you know why? Because location is a very important aspect of your property. If the location is good then the property has high rates, if it’s bad, then the rates are low but what makes a location good or bad and why is it so important? Let us see.
The Time Factor- If you are living at a place which is very near to all the basic local amenities then you reach them very quickly. You must have heard the famous saying ‘Time is Money’, so the quicker you reach your destination, the more time you save, and time well saved is money well saved. Therefore the time/money you will be saving by living in that property is added up to the cost of the property. But it doesn’t mean that it is useless to buy a property at a great location because it is you who defines the value of your own time. If your time has more value than the amount you are paying to save that time by living in that location, then you must not hesitate in paying those extra bucks.
The Environment Factor- The properties which are at a premium location then it will have a premium price too. Here the extra price which you are paying is for the opportunity to live in an exclusive place. Such locations are scarcely available and everything which has less availability also has a higher price. This is why properties on hill stations, beaches, etc have more value. But the experience of living which you receive there is irreplaceable.
The Social Factor- The Society or Neighborhood in which the property is located also determines the value of the property. Why is the location near a good society important for a real estate property? Imagine the difference between living in a neighborhood which is full of criminals and living in a neighborhood which is full of highly educated people. It is safe, secure and free of stress to live in a neighborhood of well-mannered people. This is why it is important to live in a good neighborhood and because of this, the properties in such social environments have high value.
The Distance Factor- Distance does not only hamper time, but money is also spent more if you travel more distance. Frequently traveling for long distances also adds up to your stress levels. In emergency conditions like an accident or heart attack, you will wish that you have to travel a short distance to reach the hospital. The shorter the distance to the hospital, the better are the chances of your survival. This is why it is important for a property that it requires you to travel less distance every day. This is properties at such locations are valuable.
The Employment Factor- Properties are more valuable if they are situated in a location with higher employment opportunities. It is so because if someone will live there then he will also be earning money. It is important to live in such properties because of they provide you more chances to be successful in life. This is why properties in urban areas are more valuable than the properties in rural areas.
So this is how location plays a vital role in the value and importance of a property. Whenever you buy a property, pay close attention to these factors. It will help you in deciding the right value of the property and it will also help you in deciding whether to invest in a property or not.