The phrase Location Location, Location never gets old when it comes to acquiring real estate. Location is considered
Whether the buyer is buying a residential or commercial property, choosing the right location plays a vital role in determining the profitability of that property. A highly profitable property in a good location will increase the Return on Investment. A good property in the wrong location is a bad investment.
For me, it is better not to follow the crowd, know your market. It is important to do your findings on the activities going on in a specific location because different locations attract different types of buyers, so once you know the type of people that would buy or rent your property then you’ll know whether that location is a good investment choice for you or not.
High ROI is important for every type of investment, to determine locations that’ll give you high returns on your investment look out for the following;
People prefer to live in areas where they feel safe and comfortable. If you’re going to buy a property, it is important to look out for security in that location. A well secured area increases demand for properties in that location and property prices increases over time.
Good road network
This factor is very important especially for families and working class people. Properties located in areas with good roads move faster than those with bad roads. Although people don’t mind living in areas have bad roads here in Lagos so far they can easily get in and out of the estate/ area as the case may be. Properties in these locations are relatively cheaper than those in areas with proper road network. As long as the roads are accessible, property is well priced and well finished, people will want to live in such a house.
Properties that have close proximity to good schools, hospitals, malls, markets are usually a good buy. Regardless, of whether or not it’s a high-end property. People prefer to live closer to comfort and that means the demand of properties in that specific location will be high which results in higher property value.
Large pool of buyers
A location where people are buying means the demand for properties is high. You find a lot of buyers in new development areas with a lot of potential. Same goes for both landed properties and houses. Before buying into such areas make sure infrastructure has been put in place because people will prefer to rent/ buy in locations that see to their needs.
The presence of infrastructure pays a significant role in property appreciation; you’ll see that the most expensive estates in town are those with good infrastructure. Good roads, proper drainage systems, street lights etc. Huge capital investment projects in a location also helps increase the chances of real estate appreciation, take Ibeju-lekki for example, since the beginning of the Dangote refinery, prices of properties have tripled and even surrounding areas such as Ajah are benefitting from the impact.