#1 Rule of Real Estate Investing: LOCATION LOCATION LOCATION
Those with experience in real estate investments say that there is only ONE RULE in property buying summarized in three words: LOCATION LOCATION LOCATION!
Indeed, the location of the property itself is very crucial because it must be accessible to other places which serve your other basic needs and wants. Let’s break down these important factors of choosing YOUR ideal location one-by-one to help you decide…
- FOOD – must be near a grocery and/or public market you can buy your food and water
- CLOTHINGÂ – ideally, it should have a mall nearby where you can shop your clothes
- WORK – of course, the nearer your home is to your work place, the more convenient it will be for you
- EDUCATION – a school must be nearby so your children can study and secure their future
- RELIGION – must be accessible to your church where you practice your worship and Godly duties
- SECURITY – to ensure the safety of your family, a guarded village or compound would be best
- CLEANLINESS – trees and less buildings are good, factories and dirty rivers are bad
- AFFORDABILITY – maximize your finances so as to maximize space and nearness to the city
Other Factors that you might want to consider in choosing a location are…
- DEVELOPMENT/ GROWTH of the AREA – the more future developments to be put up in a place, the higher its value will become in the future = PROFITS through LAND APPRECIATION:-)
- ROAD NETWORK – more roads which are wider and have access to public transport are advantageous
- NEARNESS TO RELATIVES – so that keeping in touch with your other loved ones would be easier
- USE of the PROPERTY – if it can be used for business and commercial use, that would be better
- ENTERTAINMENT – leisure is also important, so malls, playgrounds, and parks would help
All of the above-mentioned factors can be summarized into a 5-letter word which describes how good a property is, and that word is PRIME.
A PRIME location refers to real estate which encompasses all the reasons mentioned above. In other words, it is a place which is SURROUNDED by structures and establishments that ADD VALUE to it.
Of course, each person has his own definition of a prime location, because we all have different backgrounds and our own lives to lead. That is why I have provided this article as a general guide for all of us. You may bookmark and share this page to all your friends and relatives who will find this guide very helpful (just use the Button at the end of this article).
Remember, when investing in a property, always remember the first rule: LOCATION LOCATION LOCATION 
I was just cruising the internet and came across your article. I have to say it covers the old adage that the three most important things about real estate is Location Location Location. I would add an additional consideration if I may and that is the value of your neighbors houses. For example if I purchase the best looking house in the worst neighborhood then it diminishes the value of mine.
Where I live now is a great location according to the formula above and when we purchased it a couple of years ago everything was great but now the home owners association is having a problem collecting the dues and so we can’t afford to pay for our security guard. My concern here is not so much on security but on the lowering of the value of our property due to buyer perception. I hate to say it but when we start having vendors and tricycles having free reign inside it will decrease the perceived value of our property. So the point is in addition to the good advice above don’t forget to consider the value of the houses around you.
Best regards,
Keith
Buyer, seller, investor in Poteau Oklahoma Real Estate
Point well taken mr. Keith! Indeed, the surrounding houses also do add/decrease value to your own property, so be also wary of that
Thank you for your additional input!
Hi Sir,
My name is Jeffrey Baclangen and I’m a novice when it comes to real estate investments. I have read a lot regarding real estate investing for almost 6 months now. I’v read books like Rich Dad Poor Dad, Think Rich Pinoy and etch. and some how I’m now ready for my first deal. Somehow I’m still holding back because I still haven’t seen the formula work first hand. I just read what I know and only basing all my knowledge on what I read. I hope you can be one of my mentors as I walk in this real estate journey. I may ask some questions in the future when I get my first deal. I hope you can be my mentor soon. Thanks and more power to your site.
Thanks,
Jeffrey Baclangen
Sure Mr. Baclangen, feel free to ask
My personal email is admin@realestatephilippinesblog.com. Tel numbers 0920-9124909 and 4258726