It has been rightly said the three most important things about property are location, location, and location. A mansion under the flightpath next to an international airport can be worth less than a semi-derelict shack on the shores of Lake Ontario. Location puts a cap on the uppermost value of a property. If we capitalize beyond that point we may never get our money back.
Value and Beauty Are in the Eye of the Beholder
Realtors go to great lengths to present a home in the best light. This includes following a route to the property past the prettiest views, while ‘airbrushing out’ adjacent industrial areas, busy shopping centres etc. in the immediate location.
An astute buyer returns on their own at different times of the day following alternative routes. A property may seem peaceful in mid-morning, but a noisy neighbour could be fixing up old cars at night.
Location of a Property Affects Commuting Cost
Inner-city homes demand high prices even though they may require extensive renovation. This is because commuting time (and cost) is considerably less than if residing in a newer dormitory suburb on the fringes of the city.
Moreover an older, inner-city suburb is more likely to be nearer amenities such as hospitals, and schools with established reputations for excellence. However, it can be the neighbours in the immediate location who have the final say.
Purchasing in Run-Down Neighbourhoods
Suburbs go through cycles as the years pass. The population ages after children leave home. They become less interested in renovating their properties or doing major upgrades. As a consequence, their homes are relatively cheap upfront.
However it’s essential to know what is happening in the background before purchasing a fixer-upper like those. A visit to the local authority is essential, to find out what plans they may have to revitalise the neighbourhood.
What new shopping center-plans are in the pipeline, and how might these affect the value of the subject property? Are there any new highways planned that will pass through the location?
And Finally, What About the Neighbours?
Sound travels through walls and over fences. If the subject property is semi-detached, in a terrace, or an apartment how soundproof are the walls? Could you soundproof them if next door’s teen starts playing thumping music.
Try to avoid a freestanding home that’s situated close to the road, or a boundary with a neighbour. You may discover you purchased in a bad location if a new, noisy tenant moves in next door.
Stonegate Equity Ltd. published this post in the interests of a better-informed Calgary population, more able to make wise real estate-purchasing decisions. Speak to us soon if you are in the market for a property of your own. We may have something that’s perfect for you in terms of location.