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10 factors that make location important in real estate | MyProperty.ph
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10 factors that make location important in real estate

by Jillian CariolaPublished: November 16, 2013Updated: October 12, 2017

Why should people choose a house depending on its location?

How is location important when choosing a Philippine real estate property to buy MyProperty Philippines

“Location, location, location” is a popular saying in real estate and for good reason: it affects many of your major considerations when choosing a new home. See how these factors are affected by where a property is built before you choose your next home.

Accessibility

One of the biggest factors that can affect a person’s decision in terms of location is the property’s proximity to the things that matter most to the buyer. Aside from avoiding traffic jams during rush hour, saving on gas or fare is a benefit that people enjoy when they live close to the places they frequent, such as their place of work. Employees of Makati-based companies would naturally be drawn to properties for sale or rent that are within the area. If you have school-age kids, choosing a property close to their present school should also be considered. Are you or is someone living with you dealing with a medical condition? It would be advantageous to find a home that will bring you close to the specialty hospital or clinic where you get your treatment or medication. Depending on your particular needs, other key establishments and institutions you ought to consider in terms of proximity are banks, government offices, malls, and recreational areas.

How is location important when choosing a Philippine real estate property to buy MyProperty Philippines
Walkable communities are becoming popular in Philippine real estate. Photo via Depositphotos

Price

You’d think that two identical homes would cost the same, but not if they’re in two extremely different locations. Depending on whether a location is a prime real estate area, one house can cost more than the other. For instance, places like Makati, Bonifacio Global City (BGC), Ortigas Center, Cebu City, and Davao City are considered to be the country’s top central business districts due to their thriving local economies. Here, you will find several Fortune 500 companies and shopping centers, two of the biggest influencers of real estate movement. Understandably, these are considered to be prime real estate areas and would demand higher property prices.

How is location important when choosing a Philippine real estate property to buy MyProperty Philippines
Homes in Manila may not cost the same as those in Cavite. Photo via Depositphotos

Investment potential

As mentioned, there are certain places in the country where home prices are higher because of how popular the vicinity is, but this factor won’t only affect you when you buy a home as an end user. If you’re getting into real estate as a means of making additional income, you would want to purchase a property in a location where its rate of appreciation is almost certain to deliver the best investment return. Take the Manila Bay Area, for instance. Condos here are a popular investment option because of how close they are to Metro Manila’s top leisure areas such as the Entertainment City, Aseana City, and the Mall of Asia Complex. Since these are popular stops among tourists, weekenders, and high-rollers, units close to them would do well as short- or long-term rentals particularly for foreign visitors.

How is location important when choosing a Philippine real estate property to buy MyProperty Philippines
From an investor's point of view, location plays a significant part in property value. Photo via Depositphotos

Safety

No one wants to live in a dangerous community. By finding out about the safety of the neighborhood you’re looking into, you can avoid moving into an area with a high crime rate. Just to be extra cautious, you might also want to think about getting a place located in a gated community. Of course, safety against crime is just one part of the equation; you also need to ensure that the home is not located in a low-lying area, where flooding may occur often. Also, consider the proximity of the property to the Marikina Valley Fault System; this will indicate how prone it is to damage in the event of a seismic earthquake.

How is location important when choosing a Philippine real estate property to buy?
Living in a safe community should be a priority for you, especially if you have a family. Photo via Depositphotos

Family-friendly features

Any parent would like to see their children grow up in a nice neighborhood where their children’s well-being will be their top priority. Make sure that you go for communities where other families with children live, so your little ones can learn to socialize with kids their age. Outdoor recreation such as playgrounds and parks, when located close to home, will encourage kids to put down their video games once in a while and spend time playing outside with other kids.

How is location important when choosing a Philippine real estate property to buy?
If your kids are active, it would benefit them to live in a community with parks and playgrounds. Photo via Depositphotos

Environment

To avoid compromising your health and safety, it’s best for you to pick a location with great, eco-friendly features. Check the community’s environment to make sure that you avoid living near factories, high-traffic roads, or polluted bodies of water. Also, find out if the neighborhood implements strict policies regarding waste management and if they participate in or hold activities like community tree-planting or cleanups.

How is location important when choosing a Philippine real estate property to buy?
Is your community doing its part in helping the environment? Photo via Depositphotos

Cost of living

Whenever you look at a certain area, ask yourself “how much would it cost to live there?” Basic spending like food, gas (if you own a vehicle) are going to be a big part of your monthly budget, so scour the area to have an idea of how much these cost and compare them to prices in other locations.

How is location important when choosing a Philippine real estate property to buy?
Some things, like groceries and gas, cost more in other cities. Photo via Depositphotos

Career

When you pack up and move, your new home’s location greatly affects your work life. If you decide to quit your current job and relocate to a different city, would you be able to find a new job close to your new home right away? There is a reason why people tend to migrate from far away to the Metro Manila area: jobs are almost always available in the region’s business districts. On the other hand, it’s also worth noting that over the years, so-called Next Wave Cities have been displaying immense economic growth, particularly for the presence of information technology and business process outsourcing companies. If a change of scenery is your reason for moving away from Manila, you might consider provincial cities like Baguio, Cagayan De Oro, Lipa, Sta. Rosa, and Dumaguete, which are just a few of the aforementioned Next Wave Cities.

How is location important when choosing a Philippine real estate property to buy?
Keep in mind: developing cities tend to have more job openings. Photo via Depositphotos

Business opportunities

For entrepreneurs, your location matters if you are looking to move to a new place where you can also successfully launch a business, as there are certain cities where this could be done more easily. According to a study conducted by the International Finance Corporation (IFC), the top Philippine cities that are most ideal for startup businesses include General Santos City, Davao City, Taguig, Valenzuela, Lapu-Lapu City, and Zamboanga City. To come up with the ranking, IFC evaluated these locations based on the number of procedures, days of processing, and the cost of processing. On top of this, you should also think about the market your business is targeting. If it is a company aimed at corporations, your audience is more likely located in business districts. As for family-friendly ventures, you might consider that Quezon City is often seen as one of the most popular cities for people raising children.

How is location important when choosing a Philippine real estate property to buy?
Find areas where it's easier to open a small business. Photo via Depositphotos

Cultural diversity

This factor is particularly important to expatriates who want to take up permanent residence in the country either for career purposes or settling down. Living successfully in a relatively unfamiliar place relies heavily on how comfortable the surroundings are and how accepting the locals will be of you. Also, living in a community where there are others with a similar background as you might make adjusting to your new life easier. Due to the large population of foreign nationals, for instance, some cities where an expat might feel most comfortable living in are BGC, Makati, Tagaytay, Cebu, and Dumaguete.

How is location important when choosing a Philippine real estate property to buy?
Living in an expat community might make you feel more comfortable if you are a foreigner. Photo via Depositphotos

 

Main photo from Depositphotos

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