Are you a property developer? Are you a real estate investor?
New home sales in the United States are on the rise. Last year, sales increased a whopping 28 percent as compared to the previous year.
As a property developer, this is exciting news. A thriving real estate market means your properties will not only find buyers but also buyers willing to meet your pricing.
However, just because the market is thriving doesn’t necessarily mean you’re in for the big bucks. You must get the basics right, such as choosing the right location, especially when you want to build a neighborhood.
In this article, our focus is on real estate property location. Continue reading to learn how to get your property location choice spot on.
1. Proximity to Great Neighborhoods
When your plan is to build an entire neighborhood from scratch, you’re looking at buying vast tracts of land and then setting up a community. You’ll build hundreds of homes, social amenities, and other facilities.
Regardless of how marvelously you develop the estate, it won’t amount to much if it isn’t located close to other great neighborhoods. Usually, in such neighborhoods, there are good schools, hospitals, and other facilities that attract residents.
As such, when looking for the right location for your residential project, ensure the nearby neighborhoods are well-established.
2. Physical Security
Nobody wants to live in an area that has a high rate of burglaries, muggings, and other insecurity incidents. When insecurity becomes a big problem in a certain neighborhood, residents start moving out in search of safer places. As a consequence, property values drop.
Therefore, be sure to consider the general security of an area before making a decision. Although it’s hardly possible to have crime-free communities, your ideal location should have a strong reputation for safety. This is a major consideration for potential home buyers.
3. Building Regulations
State and local authorities develop and enforce a wide range of building codes or construction regulations.
As a developer or builder, you must adhere to these regulations. When you want to build a neighborhood, you must get approvals from the relevant authorities before you can begin the physical work.
You want to put up your development in an area with friendly construction regulations; areas where there isn’t a lot of government bureaucracy. Imagine waiting for several weeks to get a building permit. Frustrating, right?
Developing a neighborhood isn’t a light project. You need to hire legal experts who will comb through building codes in various locations and help you find a location where the law is favorable.
4. Access to Target Market
You can build a neighborhood in an ideal location, but if there aren’t enough potential buyers, your project could be a loss-making one.
This is why you need to study the demographics of a location before making a decision. For instance, what’s the average household income in the area?
This is especially important if you intend to get buyers to sign up with your project during the construction phase. You want a location where when you run a home builder lead generation campaign, you’ll get plenty of quality leads.
Build a Neighborhood in the Right Location
It takes a ton of money to build a neighborhood. To make the most of your investment, it’s crucial to choose the right real estate location. With this properties guide, you now know some of the important factors to consider before making a decision. Keep reading our blog for more real estate and property management insights.
