Location, Location, Location

Location, location, location - known as the 3 most important factors when buying a property, and it is easy to see why. The location of your property dictates how much yield you get, and how much capital growth, which ultimately decides how well you do.

And yet people still get it wrong...

Most investors only consider location within the area they live ... rather than asking themselves where else they may gain even better and higher returns. It may seem to make sense to invest in a location near to you - you can pop in to check on it, help fix any problems, and keep eye on local market better.

However, this approach to property investment could be costing you thousands, or even tens of thousands of pounds, euros or dollars in lost opportunities in the long term.

Compare this to professional property investors, who own property all around the country they live in, or even all around the world.

By asking themselves "Where can I buy property that will give me a great return?" instead of asking "What's available down the road?", they stack the odds in their favour.

Investing in property is all about the numbers, this is something I realised very early on - forget about whether you would like to live there or whether the property is down the street from you.

Instead, what I pay attention to is:

The likely return - yield, and capital growth

Buying costs and selling costs, including taxes

Cost to borrow money, ie interest rates

How attractive the property will be for likely tenants/buyers

So how do you recognise a great location?

To build wealth through investment property, you need a location where there will be capital growth ie where the property will rise in value, which builds wealth, which can ultimately allow you to purchase additional properties, and build up a portfolio.

Factors that suggest growth include:

1. Growing, developing economy eg Countries entering EU, regenerated towns

2. Demand outstripping supply ie more people want property than can be supplied, usually due to increased numbers arriving which could be due to higher birth rate, high numbers of jobs created, lower prices than similar properties else where, immigration laws being relaxed.

3. Low cost of borrowing ? if interest rates are very low, people are more likely to buy, in particular for buy to let, as they will be confident can cover all costs and make good yield. It is for the above reasons that UK investors have started to look overseas recently, and why international investors target developing countries, and growing cities when deciding where to invest.

It is for the above reasons, why UK investors have been looking overseas over the last year or so, and why international investors target developing countries, and growing cities when choosing where to invest. Remember the location of your investment will dictate how well your investment performs.

Alan Forsyth is a full time property investor and developer with 10 years experience in UK and overseas. He is managing director of http://www.property-investment-tips.com which offers free independent advice and tips on property investment, courses, countries, strategies, mortgages and much more - with a free newsletter every 3 weeks giving latest tips and offers to over 500 investors. Sign up today at the site for free independent advice!

---

Finding The Perfect Maui Home For Sale

If you are thinking of relocating to Maui, this article... Read More

How to Sell Your House For Full Price

Many people believe that a real estate broker is needed... Read More

How to Make Money in Real Estate Without Doing the Scrunch Work

If you don't have the time to invest working on... Read More

Appraisal or Home Inspection?

People sometimes confuse a home inspection and an appraisal when... Read More

How to Afford Your Dream Home

Is it your dream to one day own a holiday... Read More

Realities of Real Estate Investing

If you are anything like me, you are always looking... Read More

Guide To Finding The Perfect Central Illinois House

Central Illinois is an area rich in cultural activities and... Read More

Questions You Always Wanted To Ask A Master Builder But Never Had The Chance

Building a house (or lots of them) seems to be... Read More

Title Insurance Protects Your Financial Investment

You purchase homeowners insurance to protect yourself financially in case... Read More

First Impressions Will Sell Property Fast!

First impressions count, buyers will have already formed an impression... Read More

How to Achieve Financial Freedom with Your Home

The secret disclosed on how you too could achieve financial... Read More

How Home Buyer Rebates Work

In today's tight housing market, many buyers are looking for... Read More

Content Ideas for Ads and Brochures When Selling Your Home

Even in this hot real estate market, selling your home... Read More

6 REASONS for Investing in Florida Real Estate Investment Property NOW

I invite you to take the next few minutes to... Read More

Real Estate Investing - Books,TV Infomercials, and Seminars

Real estate investing has become popularized today because of real... Read More

Realtors: Forget Your Address?

It's a large real estate agency, and the company depends... Read More

Selling Your Home Quickly, Even if You Have No Money For Repairs

Do you need to sell your home quickly? If so,... Read More

Should Sellers Order a Pre-sale Home Inspection?

One of the main reasons home sale transactions fall apart... Read More

The New First Impression in Home Selling

As an ASP Home Stager® I know how important curb... Read More

Evil Gains Entry

When we open our doors to strangers, we can never... Read More

Flat Fee MLS Listings - Is This The Future Of Real Estate

Realtors are all a buzz about this new form of... Read More

Selling by Owner Tips

Do strangers scare or intimidate you? If you're planning to... Read More

How To Buy Property in Spain Safely

Buying property abroad is not an undertaking one should embark... Read More

How To Give Your Home A Face-Lift: The Sellers Guide To A Quick Sell

One of the great challenges to selling a home can... Read More

You Have 15 Seconds to Sell Your Home! 11 Steps You Can Take to Sell Your Home for Top Dollar

Selling your home? Here are some suggestions to help you... Read More

Victorian. Modern. Colonial. What?s Your Architectural Style?

You are attracted to a home for more than its... Read More

Salt Lake City Real Estate

From the mountains to the valley, there are many types... Read More

How to Own a Dream Home in Spain

Every year hundreds of thousands of foreign visitors travel to... Read More

Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with... Read More

Using Transformation Psychology to Sell Investment Properties

Satisfying and lucrative real estate investment depends upon your correct... Read More

Why Use a Property Manager?

Most experienced property investors use property managers. Why? Because they... Read More

Vacation Homes Are Becoming A Reality For More Homeowners

Whether it's a lakefront cottage or a log cabin in... Read More

Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less

For decades, the real estate world turned in a predictable... Read More