How To Evaluate the Location of A Property

Posted on November 27, 2010
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As a real estate investor, one should seek to buy real estate property that is in a good location. But how do you evaluate the location of a property that you are about to invest in?

Well, the best way to go about determining if a property is in an ideal location is to answer the following questions:

  1. Is their a high incidence of crime in the neighborhood?
  2. Are the surrounding streets clean and free of garbage?
  3. Are the properties in neighborhood well-maintained?
  4. Has the area been flooded before and if so, how high did the floods reach?
  5. Is the area in an earthquake-free zone ?
  6. Is the area in the path to progress?
  7. Are there newly constructed houses or buildings in the area?
  8. How close is the area to shopping centers, schools, hospitals, churches, and the business districts?
  9. Is there sufficient traffic flow for a commercial property investment?
  10. Are the rental rates in the neighborhood for similarly sized properties high or low, and is there room for increasing rates?
  11. Are there sufficient tenants occupying the rental properties in the location?
  12. Is the location easily accessible via public and private transportation?

So how do you go about getting the answers to these questions? There are several things a real estate investor should do to get such answers:

  1. Take a look at maps of the location to determine proximity to shopping centers, schools, hospitals, churches, and business districts.
  2. Research on the internet about the location to determine if it is in a  flood are or an earthquake zone.
  3. Research if there are incidents of crime in the area as reported by the media.
  4. Drive around the area to see the general state of the roads and streets and surrounding properties, and to check if the area is in the path to progress.
  5. Walk about the area and talk to the owners and tenants living in the neighborhood. (This is the most important!)

The next time you evaluate a real estate property for investment, take these tips in mind.

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