Tommy Odama, an Exceptional Chief Executive Officer – Vanguard Newspaper
Location is the single most important aspect in real estate development.
The reason is, while every other thing about a property can be changed, its location cannot.
You can renovate a building, expand it, make it smaller, or tear it down to build a new one, but you CANNOT change its location. This is why it’s very important you choose your location carefully.
The location determines the price of a property. When you locate your property in a desirable neighbourhood, there’ll be a high demand for it and you would sell at a premium.
In reverse, if it’s in an undesirable neighbourhood, demand would be less and this would reflect in its selling price.
This explains why houses with the same design and quality, but in different locations, would sell at contrasting prices. If one’s in Ikoyi, and the other, Ikorodu, the price of the former would probably be 3 times that of the latter.
As a real estate investor, you should consider the present and the future. A location which seems like such a big deal now might not be so in another five or ten years. The same goes for a location that appears to be low class at the moment.
You should be able to make proper valuation and projection to determine if that location is the right one for you. For example, are there industries springing up around there? What social class of people are predominant in the area? Is it close to major roads?
These sorts of questions help you determine the right location to invest your money.
Still, when in doubt, call an expert.