Location is so important that a plot of land in one area could attract the price of a fully developed house in another area. Depending on the competitive advantage it enjoys.
Explained below are the factors that bring about differences in the choice of location of real estate investment market.
DENSITY OF THE AREA
Among the categories of area that exist in most cities include low density residential area, medium density residential area and high density residential area. These areas identify the density of development and population of inhabitants. As the name implies the low density residential area is the area with minimum population and development density while medium density residential area has area with medium level of development and medium population and finally the high density residential area has a very high rate of development which are always characterized with congestion accompanied with rapid population growth. Some people prefer high density areas where houses have very little spaces between each other and have close to six to eight different families living in the same house. The higher the density of an area the higher the population and thus make quality of life worsen in such area. Also the lower the density of a residential area the higher the quality of life. Make sure you consider a wise locational judgment as per residential density of an area don’t just a non rewarding decision.
ACCESIBILITY TO THE AREA
Accessibility to real estate investment is very important when making a wise investment decision. Problem of accessibility such as untarred road, potholes, lack of drainage system to channel rainwater away from the road in order to avoid road destruction. Poor accessibility to real estate locations bring about difficulty of driving through rough terrain all the time. Hence accessibility should be considered when making a wise investment decision.
GROWTH POTENTIAL OF THE AREA
There are some areas that do not have the potential to grow, most of these areas do not have basic infrastructural facilities and services for human need and consumption. The level of development in such area look nosedived. Such an area is known to decline the value of real estate investment. Therefore, one should be very careful when selecting a place to live and to invest.
TOWN PLANNING ORDINANCE & ZONING REGULATION
Town Planning deals with the art and science of ordering land uses and activities in geographical spaces of a given area, hence the need to understand planning policies of a particular area is very important towards selecting an ideal real estate location. Town planning ordinance may affect your investment decision because your project is subjected to town planning laws of the project area. Make sure you understand more about various law of planning in order to have confidence on your real estate investment
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