Like they say, location, location, location.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Bob and I have been talking out to the world on the topic of sound investment, some things that are intuitive, but some things that are counterintuitive that still makes sense in regards to purchasing your next property.
Bob Nelson: The concern to a great degree and, of course, the very first real estate course I took 3000 years ago, the instructor said, “Name three things that will establish, maintain, and create value,” and in order of importance is number one, location, number two, location, number three, location.
Once you own something, you can’t change the neighborhood. Well, it doesn’t make economic sense to change the neighborhood to benefit your property. You are stuck with that location, the pluses and the minuses.
Marcia Edwards: So even though you’re looking through the lens of a buyer when you’re purchasing, look through the lens of the next buyer and the opportunity they’re going to see. Is the neighborhood going in one direction or another? Is it being rejuvenated or is it becoming dilapidated? Is it owner-occupied or tenant-occupied in your surrounding if you’re looking at single family residential?
Bob Nelson: Yeah, and with a single family residential, there could be a very large benefit for an area in transition. If it’s transitioning toward a more valuable, more important use than residential, it could generate value, but in most instances you don’t want to necessarily play that. You’re concerned with buying a residential rental, you want it to stay residential. You want it to stay safe. You want to have access to things easily, good parking, et cetera.
Marcia Edwards: It’s got to be predictable, and what I would also suggest even if you’re going to own or occupy it, consider what it will feel like if it were a rental. Is it close to mass transit? Is it close to an employment base? Does it have a Walk Score? That is, can you have a walking lifestyle successfully with some shopping available? That’s ideal for resale.
Bob Nelson: Now you mentioned Walk Score. You can go to your computer and just simply plug in Walk Score. It is a system that somebody generated, I don’t know what guru it was or what technician it was, but they will evaluate your address as to the walkability of that location. Is it absolutely required that you have a vehicle or could you walk to sustainable establishments?
Marcia Edwards: A great tool when you’re looking to invest.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.
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