If there’s one thing that will decide the ROI on your property, it’s the location of your real estate purchase. Everything else is secondary and should be seen as value addition to your real estate investment.
The real estate prices in London are stable and moving up. But the valuations for properties in outlying areas lag behind than their counterparts in the central zone. The real estate properties lying near the areas services by the underground subway are seeing their valuations going up but the same cannot be said about areas not serviced by the underground subway.
The same phenomenon is holding true for United States. As a result of the sub-prime mess properties all over the US are going down. However areas which are serviced by good rapid transit systems are holding onto their prices against the rest of the areas where the property valuations have gone down considerably. However there’s the balancing catch. A property very near (too close) to the transit system is neither good. People always prefer to have quiet and peaceful places.
Maintaining the balance is as important as identifying the location. Everyone would like to have the police station in their area somewhere near by; but no one would like have their house or property to be located right under the police station’s nose. You don’t want the cops to breathe down your neck each time you come out of your house or office J
Location, as they say, holds the key to your valuations - In good times, as well as in bad times.
So it is also in Toronto neighbourhoods. Location IS important, even if there are no “ghettos” in the city. The roof is leaking? No problem, you can repair it within few days.But - the house is near busy road, passed by 150 trucks per hour? It will get worse! Your kids don’t care if there is art-deco fence, they want near park. Unfortunately people often don’t realise this, when buying/selling their house and sometimes it’s really problem to explain, why is this property so expensive/cheap.
[…] could have been sold in the strong market sentiments of 2004 and 2005 but now its location… location… location more than […]
Location is important in any market. It should be the thing that makes you say no thanks immediately. If the deal is so amazing and your only option then do realize this will reflect on resale value.