Property location plays an integral role in how your house is currently valued and how much it will be worth in the foreseeable future. What this means is that before you make a decision on where your house will be located, you should have a broad understanding of precisely what you should be looking out for. Below are tips that will guide your decision:
Infrastructure Matters a Great Deal
By default, the level of infrastructure in a particular location will either drive up the value of your house or force it down. This explains why seasoned real estate investors take trends around infrastructure very seriously. The E-Centre, start-up companies, restaurants, Yaba College of Technology (YABATECH) and other educational institutions has transformed Yaba from what it was 2 decades ago to the technology hub that it has gradually become. Yaba, a neighbourhood in the mainland axis of Lagos has become a prime attraction for real estate investments
Ideally, you should focus on areas and neighbourhood that have shown a potential for growth in terms of infrastructural development. Look out for neighbourhoods and places where the government has plans to upgrade infrastructure. Such locations are great places to buy a house especially when you have to make a decision.
Transportation is a Deal Breaker
Transportation, in and out of any property location, is a major deal breaker. Before you buy a house, ensure that it is accessible by an efficient means of transportation. A property situated in a neighbourhood that is difficult or stressful to access will tend to lose value over a period of time. This is one of the several reasons why a typical property within the Ikorodu axis of Lagos is not on the same scale of value as one in Ikoyi.
Quality of transportation is far more important than you realise. Neighbourhoods with good road networks and fast and easy means of transportation will rise in value in the course of time. A place like Surulere continues to witness a rise in the value of property within the neighbourhood as a result of its ease of access and interconnection to major roads.
Optimise the Benefits of Lifestyle Attractions
Potential property buyers and renters have a soft spot for houses and apartments that offer more in terms of lifestyle attractions; especially when compared to areas and neighbourhoods that lack them. Attractions like beaches, resorts, posh restaurants, shopping malls, cinemas, nightclubs, bars, police patrol and family-friendly spots translate into value for your property. The more of these that a neighbourhood has to offer, the better for you as a property owner.
Trim Down Your Options
Before you even start considering a property location, you should have your budget locked down. Once this is done, it helps you narrow down your options into a list of realistic property locations.
If, for instance, you have a budget of N15 million, you can buy a 3-bedroom townhouse within the Ikorodu, Gberigbe and Ibeshe axis of Lagos. Such a budget will cut out a neighbourhood like Ikoyi off your list of potential locations. A 4-bedroom duplex home in Ikoyi can cost you around N124 million. This figure can rise or reduce depending on the specifics of what you want.
Your final budget should be a range of what is realistic for you considering other financial commitments. Ensure you work with a trusted real estate expert to make this easier. In a situation where your budget cannot get you exactly what you want, the real estate agent can give you suggestions on nearby neighbourhoods that have the property that fall within your budget.
The People Within Neighbourhoods
When checking out neighbourhoods, don’t forget to take a good look at the kind of people you find in such districts. A good way to do this is to visit some of the popular hangout spots within the neighbourhood.
If you visit a potential property location and find it littered with individuals of questionable character, don’t consider this a coincidence. Carry out your background check to know who your potential neighbours are. Don’t take this for granted.
Final Thoughts on Property Location
A property location might be stigmatised by a scandal from the past. Always have a fresh set of eyes when carrying out a background check on a potential property location. Remember that finding the right location is a huge step towards securing a long-term capital growth. What other factors would you consider before deciding on a property location?