Investing In Real EstateInvesting In Real Estate

If you are looking to buy a home, the price you can afford to pay for a property isn't the only thing you should consider. Along with the financial factors, location is another significant factor to weigh before investing in residential real estate. Even if you purchase a home that you intend to live in for many years, location generally plays a key role in how much the property may appreciate in value over the years, providing the neighborhood doesn't decline.

Key Elements of Location to Consider

Not only can the location of homes for sale earn real estate agents more profit, location can impact your decision of where you want to live. Factors that may influence where you want to purchase a home include:

• Proximity to work, schools, shopping, and recreational activities. Homebuyers often want to live near the places where they go frequently. Homes within walking distance to schools, shops, restaurants, public transportation, and leisure activities offer convenience, which can increase property values.

• Neighborhood and community quality of life. More homebuyers are looking for a sense of community and neighborhood in their search for the "right" home. Most people want to live where they feel comfortable–in an environment that provides access to services and resources that create opportunities for social interaction and lead to healthier living.

• Availability of public transportation. Public transit provides an alternative to driving and can save you money on gas, parking fees, and vehicle maintenance. In fact, if you're looking to cut your living costs, access to public transportation can save you thousands of dollars a year.

• Property tax rate. Property tax valuations and rates vary widely by jurisdiction. Therefore, it's important to know the amount of the property taxes you would have to pay when calculating whether your monthly budget can afford the cost of maintaining a home in a particular area.

• Zoning laws. Before buying a home to which you intend to make improvements, you should familiarize yourself with the local zoning ordinances and regulations that guide what kinds of changes you can make to the property.

• Health and safety concerns. The neighborhood crime rate is a factor to consider when it comes to the safety of the area in which a home is located. Nearby industries are another factor to take into account. While industrial properties can have a positive impact on a community's economy, environmental pollutants that factories produce can lower air and water quality in the neighboring residential areas.

• Resale value. When choosing a home to buy, you'll want to invest in residential real property that will increase in value–especially if you plan on selling the real estate one day. In addition to location, a home's size, design, age, condition, energy-efficiency, and curb appeal all impact its resale value.