PROPERTY NEWS - Location is one of the most important aspects to consider when purchasing a property, regardless of whether a property professional works with commercial or residential assets.
Property experts emphasise the importance of location because it has such a massive bearing on a property’s potential investment return, says Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.
He notes that location refers to several aspects that potential homebuyers need to consider before they make their final decision and sign an offer to purchase.
He notes that location refers to several aspects that potential homebuyers need to consider before they make their final decision and sign an offer to purchase.
There are various factors that influence whether a particular location would be considered to be ‘good’ or ‘bad’. “The more positive elements that a location has going for it, the greater the potential resale value the property will have over the long term.
"Essentially, it comes down to desirability and whether buyers would want to live where the home is situated - demand directly influences price,” says Goslett.
Many buyers focus on the home itself and compromise on its location, however in terms of the appreciation potential of the property, this will end up hurting their back pocket. It is always better to put location as a top priority and rather compromise on the property.
"Essentially, it comes down to desirability and whether buyers would want to live where the home is situated - demand directly influences price,” says Goslett.
Many buyers focus on the home itself and compromise on its location, however in terms of the appreciation potential of the property, this will end up hurting their back pocket. It is always better to put location as a top priority and rather compromise on the property.
While it is impossible to change a property’s location, the home can be renovated or changed to meet the owner’s needs.
Potential for growth, development
According to Goslett, a good location is where there is the potential for growth and development. The area needs to be able to support the demand for property over the long term and subsequently increase the value of the property in time.
Potential for growth, development
According to Goslett, a good location is where there is the potential for growth and development. The area needs to be able to support the demand for property over the long term and subsequently increase the value of the property in time.
However, it is important to bear in mind that certain development can bring down the value of a property, such as the construction of a power plant or dump within proximity to the home. “Before purchasing in an area buyers should find out about the future development plans of an area.
Developments such as new industrial sites, new roads or railways or even industrial activities can vastly alter the price profile of an area,” he warns.
