Many people are just concerned about location when it comes to buying real estate. You need to keep in mind that there are a variety of different factors which you need to consider. Only when you take into account these factors, it is easy for you to make the right buying decision. The most ignored element while investing in real estate are environmental factors. When you consider all these factors, it is easy to make the right decision. You cannot ignore these factors in the long term if you plan to become a good and successful real estate investor.
The topography of the area has a significant impact on the development in the area. Improper topography can also lead to flooding and various other problems. Ideally, when you’re investing in real estate, you should invest in one which has flat topography. The rules of the area will change depending on its topography. That is why; this is an environmental factor which you cannot afford to ignore.
2. Air and water quality
People are becoming conscious of the air quality and water quality available in each area. If you ignore this factor, you can end up investing in a property which does not appreciate due to these factors. Our cities are becoming clogged, which leads to poor air and water quality. Both of these are necessary for proper habitation. That is why any problem in the air and water quality can keep the prices deflated for a long time.
The areas with clean air are not only fetching good returns but are also in high demand. Similarly, water access and water quality is another important factor which is being considered by real estate investors. Sure enough, these properties are fetching a premium, but they are worth it. If you cannot afford to buy a property in such an area, you can go through the crowdfunding to get an affordable deal. It will allow you to buy the property in an area which has excellent air and water quality. You can then enjoy the fruits of higher returns and better habitation in the area.
Climate has a significant impact on the habitation of the property. If you invest in an area which has pleasant weather throughout the year, you cannot only rent out that property easily but you can sell it for a premium.
Generally speaking, you should prefer area which has mild or warmer winters so that it is habitable throughout the year. You should look at the population density as well. It should not be overcrowded neither it should be sparsely populated. When the climate is right, you will find that the area meets all of these criteria quite easily. You will not have to work pretty hard to get such an idea. You have to check the climate and after that look at the surrounding areas and the properties which are available for investment.
The 4th environmental factor which we are speaking about now has become quite crucial in recent times. Sustainability is an essential criterion which investors are looking for while investing in real estate. Sustainability refers to the ability of the property to exist without disturbing the wildlife around. It relates to the skill of the builder to construct a home without impacting the ecosystem which exists in the area.
Millennials and other property buyers are putting a significant emphasis on investing only in sustainable homes. Sustainable homes fetch a premium when you sell them. Moreover, it is easy to gain a decent appreciation when it comes to sustainable homes. It is especially true for homes which are in semi-urban and rural areas. These are often built on land which is part of a natural ecosystem. That is why investors first try to figure out whether the home is sustainable or not.
Sustainability refers to the potential of the home to reduce the carbon footprint. If it is a green home, the consumption of electricity will be significantly lower. The low carbon footprint will again protect the natural ecosystem around the house. Whichever way you look at it, sustainability, protects the natural environment around the house.
So, if you want to invest in real estate and choose a property which is environment-friendly and gain a decent appreciation, these are the four factors which you should consider. When you have shortlisted the property based on these four factors, it is easy for you to pick an eco-friendly property. These factors will also help you choose a property which is more stable in terms of appreciation and perfect for investors.