According to the old real estate saying, “The only three things that matter in real estate are location, location and location.” The fact is that a ten bedroom, eight bath home with cathedral ceilings and a swimming pool that is sitting next to a garbage dump is nearly worthless.
On the other hand a little one bedroom, one bath shack sitting in the middle of downtown Dallas would be worth a small fortune. So you can see that the location is of the utmost importance when you are considering a piece of real estate to invest in.
What is it that makes the location of a piece of real estate valuable? The answer is fairly simply really. The value is base on nothing more than the desirability factor. Desirability is a fluctuating intangible that is really hard to nail down.
Property that is totally undesirable to one person might be just the next person’s dream-come-true. Moreover, this phenomenon is true for real estate investors, for home buyers, and for renters. It is true for all aspects of the real estate market.
The main point for any real estate investor to consider first is what their strategy will be for making a profit on a property. Buying is only half of the equation and whether the location of the property is good or bad depends upon that profit strategy.
For example: If an investor is going to invest in a property with the intention of just waiting for the market to go up, prime real estate is probably the very best choice. Locations that are near entertainment centers or developing areas would be best because the likely hood that the property will increase in value simply by waiting is a pretty good bet
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