Category: Blog

How important is the Location for Buying a New Home

Blog - Prime Property Developers

“Location, location, location” has been the mantra being chanted in real estate since at least 1926, but it’s still as relevant today as it was then. A good location means different things to different people. Some would argue that it’s the home that matters; and depending on your personal needs, the location might not be the top priority for you right now. However, when going house-hunting, do keep the following points in your mind to help you make a solid investment – after all, buying homes isn’t like buying your daily groceries!

Neighborhood – Most people are ready to pay more for homes that are located in safe, low-crime areas. Homes where the parents don’t have to worry about their kids walking back home alone. When buying a home, you also wouldn’t want to live in a place where there is a club or bar close-by for the public nuisance they create. Other things to check would be the presence of smoke-chugging industries or smelly canals or even waste dump sites nearby to your home. Aside from the chances of their polluting your water and air resources, they are a major threat to you and your family’s health.

Schools – Most people prefer homes where there are good schools and colleges in the locality. Such homes also have great resale value, as just like you, others too want to buy homes where there are good educational facilities for their children. The take-away point here is to buy the home with selling it in mind.

Facilities – Everyone wants to live in areas where they don’t have to go too far to access commonly-used facilities. After all, everyone wants to live close to a supermarket, a good hospital, a couple of trendy malls or cinema halls, restaurants, etc. And the closer the home is to the commercial center of the town or city, the better it is as the property’s value becomes dearer.

Transport – Another important feature to choosing a home is having adequate access to nearby transport facilities. A close-by bus stop or bus station, a not-too-far-away railway station or an airport are all features that add to the value of your property.

Finally, it’s always better to avoid buying homes too close to schools, hospitals or fire stations, as the consequent sirens and noises on a daily basis can become a bit of a pain to live with! Look for homes in open spaces and away from congested areas…

Special Points for the Buyer who has Resale in Mind

Blog About Resale - Prime Property Developers

One of the best ways of making the big bucks is by investing in real estate – as history has repeatedly shown this sector to be the most stable amongst the various forms of investments. Buying a home for the sole purpose of investment still means that you need to buy the home as if you are going to use it for yourself. Only this way will you be able to make a good choice of a property that will increase your wealth and make the property more resalable.

The first factor of course has to be the location. The house needs to be located in a good neighborhood, where it’s safe for kids to walk unescorted. No one wants to buy a home in an insecure area. The neighborhood should also be devoid of potential sources of noise pollution, waste dump sites or nearby smoke-emitting industries.

The locality should also include access to basic facilities to a nearby hospital, pharmacies, grocery shops, malls, cinema-halls, schools, etc. It should also be located in a place where you can easily access areas with numerous job opportunities. People want to live in places where they can have easy access to jobs as well as schools.

The property should also be situated in an area that’s still in its growing phase, such that with upcoming infrastructure and facilities, the cost of your investment will increase in its value over time. This is called capital growth, making buying at the right price critical. If you buy a relatively expensive property, you will have to wait that much longer to derive substantial benefits from it. However, do remember not to sell the property for the first three years at least as it’s considered short-term capital gains and can be taxed.

Before buying property for resale purposes, do make sure that you have enough liquid funds to carry on; you should have a steady income plus a nest egg tucked away for emergencies. A situation shouldn’t arise whereby you have to offload the property before its values have gone up sufficiently for you to make a killing on it.

Investment in property is a long-term scenario and you shouldn’t expect substantial gains within the first few years itself. In fact the longer you hold it, the more equity you build on it. And in the interim period, you can always rent it out and pay your loan EMIs with that. Gains all around!