Location: Investing in Property

A Survival Guide to Leasing
July 8, 2014
Birmingham Alabama Ranks #2 in the Country for Largest Price Increase for Single Family Homes!
September 10, 2014
Show all

Location is the most crucial aspect of property investment. It is a cardinal rule that must be followed in the industry. Real estate, similar to the nature of stocks, changes over time. There are only two possible scenarios over the course of change: it appreciates or it depreciates.

Well-placed property will be more likely to yield greater profit returns in the future. ROI may take the form of capital growth or rental returns. The better situated a piece of rental property is, the higher the owner can demand of tenants in terms of asking price.

The question is, what makes a great location?

The closer a property is to the central business hub, the higher the value a property can command. Its proximity to other necessities such as public transportation, public facilities, shops, markets, and other commercial establishments play a part. The more densely these establishments populate an area, the higher the property value will be. In addition, the overall safety of the location also plays an important part. High crime rates can only serve to detract investors.

While some properties for sale may not exactly be so enticing at the moment, you have to look at the broader picture. There may come a time when the value of a property in a certain location will skyrocket because of developments in the area. Even once thriving districts that have fallen into neglect can enjoy the same fate when subjected to successful revitalization.

Location is the key factor that makes good investments great. It takes a lot of precise calculations for property investors to separate locations that have potential from those that will most likely just stagnate. Sometimes, all it takes is sheer luck to succeed in property investment. There is a reason the phrase “location, location, location” has been used since the early 1900s.

Birmingham Income Property, LLC (BIP) is committed to providing clients with the best properties in strategic locations. We have the hottest properties in the thriving city, ready to become the income-producing real estate you have always wanted to own. Contact us today to know more about the investment opportunity that awaits you.