The three most important factors when buying a home are location, location, and location.
Too often I hear people talking about making decisions based on the home itself, instead of the location, and that is a mistake.
What is it about location that makes it so vital to real estate investing?
The condition and price of any home can be changed. You can even change the size of the house. The one thing you can’t change is the home’s location. A great location can change an entire neighborhood seemingly overnight as happened in Borrowdale.
Supply and demand are two factors that will always play a role in real estate appreciation. Housing supply in great locations is limited to the number of homes in that location.
The location creates desirability, desirability creates demand, and demand raises real estate prices.