The Importance of Positioning, or in Real Estate Terms – Location
You know the expression in Real Estate investing. What are the three most important things to consider when purchasing Real Estate?
- Location
- Location
- Location
The bottom line is, you cannot underestimate the value of a good location.
If you are a business, you understand the important of being close to good traffic sources, But even if you are buying a home, it is important to be close to that the amenities you use every day – be it schools, grocery stores, parks and playgrounds. While everyone may differ slightly on the list of things they want and need in a good property, those that can tick off items on these lists will sell for a premium.
When you are well-located, you do not have to work hard to find buyers when you want to eventually sell your property. Even in a very depressed market, there will always be a buyer for a well-located piece of land.
- What sorts of “amenities” are your ideal clients looking for?
- What other interests do they have?
- What other websites or platforms do they hang out on?
- What do they do there? What do they pay attention to? What do they value the most?
Position yourself next to the traffic – the people who would make your best customers. Make it easy for them to find you. and to identify you.
Where to Find Clients Who Truly Appreciate the Efforts You Have Put in to Your “Solutions”, – Products, Services.
In Real Estate terms, neighbourhoods are very important. Does the neighbourhood you are purchasing your home/business in suit your needs? Your ambitions? Your goals?
Rich neighbourhoods vs. Poor neighbourhoods
If you buy a piece of property in a poor neighbourhood, even if price-wise you believe it to be a “great deal” – no matter how much you improve that property, you are simply not going to get your money back on your investment. In fact, you stand to lose a great deal. This is what is fondly called “the money pit”.
Houses depreciate. And in poor neighbourhoods – especially those on a downward spiral – land prices can go down as well. You will have to make repairs while you own your buildings. And if the real estate value does not go up, you will end up spending money year after year with no positive return for your troubles.
If the trend in a neighbourhood is sideways to down, people are not going to be interested in buying from you. They have other things to do with their limited resources. And they will worry about the crime in the neighbourhood. They will worry that they have to buy extra strong locks for their doors. And they will worry that if they do buy the “nicest house on the block” they will be a ready-made target for thieves.
Any improvements you make to your property will not be rewarded because there is simply no-one to appreciate what you have accomplished. People just can’t afford it. Most of the people are renters. And renters have a tendency to destroy value. So it is not seen as a lasting asset.
That being said, there are those who make a great deal of money becoming a landlord. But this business is not without its issues. The returns have to be quite high in order to play this game, unless you are a real expert in picking tenants and dealing with issues as they arise.
Want to make money renovating properties? Head for the more expensive neighbourhood right. It may cost more initially to make that purchase, but the value is there.
If you buy a run-down house in a rich neighbourhood, everything you do is appreciated. Your neighbours love you. They smile and wave at you as you are out in the yard making improvements. Because it improves their property values as well. It makes the entire neighbourhood more compelling.
When you do make improvements to your house, it is far easier to find a buyer for your property in a “nice” neighbourhood. There is always someone who is too busy making money elsewhere that wants to benefit from the work that you have done and has the cash to pay for it.
What does this have to do with Websites?
Solve problems that people are willing to pay for. Sell products in markets where people are happy to purchase your goods and services. develop websites for people who are looking for what you have to offer, and are willing to pay for it.