Location: The location factor in real estate
For most people, buying real estate is probably the biggest investment of their lives. Some conventional investments lose their appeal, especially during crises, but many consider owning property to be the safest form of investment. This results in the desire to invest one's wealth as profitably as possible by buying a home of one's own or a property used as an investment.
What is the significance of the property's location?
One of the most important rules in the real estate industry is: location! Alongside the condition of a property, it directly determines its value and decides the extent to which an apartment, house, or plot of land is of interest to potential buyers. As a capital investment, a property is only profitable if it generates rental income. And this aspect, in turn, is only achievable if the purchased property precisely meets the needs that potential buyers or tenants have in that exact location.
Simple, average, and good location
When buying real estate, several other factors determine the evaluation of a location. The micro-location – meaning the immediate surroundings – also influences the value. This includes the condition of the surrounding buildings as well as the view from the windows. Prospective buyers should definitely inquire at the local building authority about already granted or planned building permits on neighboring plots, so that the beautiful view is not potentially blocked again after a short time. A property on a busy or densely populated street with few green spaces is usually rated only as an average residential location when buying real estate, whereas a house in a purely residential area with lots of greenery is considered a good location. Excluded from this assessment are, of course, properties in the best and most attractive locations of metropolitan areas. Completely different criteria apply to these. As real estate agents in Munich, we are at your side with advice and practical support for the sale or purchase of a property. In our exposés, the location of each property is described in detail. Both the micro- and macro-locations are examined closely.
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Keep the entire region in view
Whether the value of a property develops positively or negatively can also be forecast based on factors such as population trends, the labor market, and purchasing power. High unemployment in a region means declining purchasing power and thus a decrease in property value. Population size also has a major influence on real estate prices, as is easily seen in the price differences between German cities. In cities with fewer than 50,000 residents, a condominium costs an average of 822 euros per square meter—in major cities with about 500,000 residents, the buyer pays starting from 1,355.00 euros per square meter for a comparable property. However, these are only rough guidelines, and every single location must be examined very closely. When buying real estate, location makes all the difference!
Do you live in Munich or the surrounding area and are you thinking Selling your propertyWe would be very happy to create a Rating, without obligation and free of charge. We look forward to hearing from you.
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