CHAPTER 17 When Buying, Location Matt ying, Location Matters More than Leasing It’s the cliché you hear over and over again. Location, location, location. It gets said so much its meaning has suffered. However, the cliché exists for a reason. When you lease a property it only holds true for you and your staff, but when you buy a property it means everything for your investment. Property location issues are usually major. Property access, environmental safety, bad areas, zoning issues, and traffic congestion will significantly drive down the value of a property. These aren’t only the biggest factors in the operating success of the building — as they are for tenants — they will make or break the value of your equity. This is why being thorough and knowing the ins and outs of your area and concerns before choosing a property is so crucial. Missing just one of these factors can be detrimental.
EVALUATE POTENTI TENTIAL AREAS WITH A LONG-TERM E G-TERM EYE
This is one of the tougher parts of evaluating your future purchase. Central business districts are usually good. But suburbs or residential areas can rise and fall in quality and what businesses there are around your building. The long-term development of your location is the biggest variable in your expected return on investment. The US market has been rising steadily, so most investments tend to grow in 101
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