If you are considering a real estate purchase you have probably heard the expression “the three most important things in buying a home are location, location, location!” You most likely heard this from your parents or a family friend. It has been my experience that not too many agents in Toronto share this credo with their Buyers. As i have said many times, do not get me going on multiple bidding wars in the GTA! The other credo that has been overlooked is RESALE! Buying a home or condo is the biggest “investment” of your life. The LOCATION, LOCATION, LOCATION is directly linked to RESALE! This investment has to have some liquidity. It’s not like a bank account or even your mutual funds …. it’s stability is based on the market and the credos above. Many of my first time buyers get quite anxious when the time comes to sign onto an agreement to purchase a home or condo. They seek reassurance about their financial situation and the long term commitment that they are about to undertake. Most times these buyers are either young graduates new to the job force or young couples starting out their new lives together. The operative word here is “young!” You can search out real estate product on MLS all over the GTA and prices may appear to be consistent for similar product in similar locations….NOT! A professional real estate agent should know this! You can pay the same money for a three bedroom, 2 bath home with parking or a funky condo in a “not so good” area as you would pay in a “premium” location! A novice buyer may not consider this but the credos apply. Comparing this investment …. the premium locations have a higher percentage increase in value compared to the average. The premium locations have better schools. The premium locations have better access to public transportation. The premium locations have better access to shopping, restaurants and parks. The premium locations have lots of new construction and bungalows being renovated / capped to two storey homes. The premium locations are demographically more comfortable. The premium locations have a higher RESALE value. So it is simple, regardless of your budget, be sure to search out the “premium” locations for your real estate investment. Much better liquidity and more profitable! 
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http://www.realtydrama.com/5-factors-that-impact-the-value-of-your-home/
I bought my first house last year. It was super exciting! But I knew I was making an investment.
I did that location into consideration. In fact, in my heart I bought the house because the location charmed me!
But I also knew that I had to buy a house I could re-sell. I didn’t buy a premium listing. I went in the other direction. I bought a fixer-fixer-upper. Hopefully when I’m done, I will have created a premium listing with the right location.
Good for you …. buying off the “beaten track” usually will avoid overpaying for an identical home in the premium areas …. of course the resale value will be affected so be careful where those “fixer – fixer- upper” dollars are spent.
I’m with FlanneryCam, I bought my house in a location that isn’t considered “THE” place to live in my city. By doing this, I saved over 200K by having to commute less than 10 minutes extra each day for an identical home. Plus, the money that I’ve had to put into this is much less than it would have been in that location. I only have to pay county taxes as opposed to paying both city and county. Win win!
Buying a home is an investment like any other. You want the best situation for your budget. When I buy my first home, I am definitely going to take your advice. No one wants to receive less than what they originally invested!
True. For me, location is everything I would look at in buying a particular property. If I choose to live in the house for good, a good location will lead to convenience and time-efficiency. It will also be more convenient for friends, family members and work colleagues to visit me. Nevertheless, I also avoid buying properties that are in the center of the neighborhood or of the city. They would be way very expensive. As long as the place is accessible to my work or to my kids’ school, that would be fine. If I also plan to resell the property in the future, I would be able to peg a higher rate for a property in a strategic location.
As you suggest …. the time proven “location, location, location” adage always rings true!!
“It will also be more convenient for friends, family members and work colleagues to visit me.”
I guess this is the only part of the location, location, location adage, I’ve ignored.
I’m in my prime location. I’m super satisfied with my commute and my lifestyle living out in the country but working in the city. But it is definitely not a convenient trip for friends and family. And that has stopped me from hosting get-togethers!
I think this is specially true for condominiums and small houses which are meant for a small family or single persons. When a family expands, the space needed also expands so, someday, we might need to find a bigger house and sell the smaller one.
I agree. In Toronto, if you happen to buy your first condo along Queen street or even better near The Beaches or The Annex, you will be sitting pretty!
The first property that I purchased was a condo in a nice area. It was a new development. I was happy with it. It was near shopping malls, very close to public transportation and the price was reasonable. When I sold it, I made a decent profit. I was very proud of myself.
I must agree with you on this, location it’s one of the key factors that decide if your house/property is going to be sold or not. In fact, it’s the most important one, after which runner up is the property/house status.
Completely agree with everything you just said there. If the property isn’t in a good spot, no one is going to want it. If someone does want a place in a less than prime location, that person sure isn’t going to want to pay too much for it. Who wants to pay top dollar for the right to drive 20 minutes to the store or to the bars?
TEST COMMENT 2
So many times I have passed over looking into what seemed to be a great house, because of the unfortunate location it happened to be in. The three rules of LOCATION definitely ring true, and in my opinion, are the most important of all. You can always update or renovate a home, but the only feasible way to change the location around it is to move.
I think location, location and location equals good transport system so be close to a mainline train station, think of schools for children and finally food! Yes you need to be close to a convenience store. I once lived in a village that had a church, a school, one pub and a corner shop it ticked all the boxes and the for sale boards were never up longer than a week or two.
Precisely, people need to be near things that make their lives run smoothly. All of those particulars count very much.
Any good advice on what to look for, when looking for; location, location and location?
In the posting Location, Location, Location i reference many attributes of the “premium” locations.
Some may just be trendy but the basics still apply!
Securing the services of a professional, full time real estate agent will enable you to focus in on those better locations.
My husband and I made are first home purchase about two years ago through an article of agreement. It is an OK house I would say but most definitely has its problems. A good thing for us is the location is a location everyone wants to live in my area. It makes our little starter home worth a lot more than with being in any other location. So, I believe location is the biggest element with buying a home. Selling our home should not be an issue even with all the problems it has, which is relieving to think about!
By choosing the right location, it can yield better appreciation rates, fewer days on market when selling, as well as top schools. By taking all of these factors into your decision, you gain the knowledge of knowing if your life circumstances change or if you decided to sell, you will not be stuck with a home in an area that isn’t desirable
Consider things such as the nearest grocery store or gas station. Are they well maintained? Are the buildings vacant or are there “rough” looking people hanging around? Does the area make you feel safe? Your potential buyers are going to factor in these issues when considering buying your home in the future, you should too.
Location is important when it comes to real estate, but the main reason is: value. If you happen to purchase a home within a crime ridden neighborhood, you can bet that the actual value of your home will be next to nothing.
How important is location to you when choosing a home, for me it is my childs safety and also how comfortable am I with my child walking to school and coming home and how well can I sleep will always say do your research and make the best choice for your family.
Another very good point!!
Just this week i was talking with an associate and he shared with me his client’s interest in buying a home in a “not so nice” neighbourhood rather than expanding their budget a bit.
I shared having similar experiences in the past with my clients, so i would suggest that they visit the neighbourhood in the evening from 6:00ish to 9:00ish. This would give them the feel of the local “flavour” of that location.
In my nineteeen years selling real estate none of my clients ever opted for the “questionable” choice!!
As you have suggested family, children and safety always have to be prime considerations in choosing home!
Location, location. location!!
How big of an issue would you consider when looking for a home would be. I say very important because where you move may be where you consider building a family and a life.
I can speak on Location all day, when thinking about a location just think what is in the best interest of my family and I. Will be feel safe, is the area friendly and do we like it here
One more thing I forgot to mention about location is noise in the area be cautious of firehouses and ambulances and airports unless u like noise
I prefer corner locations, but most home buyers want to be in the middle of the block. I suppose they feel less vulnerable with neighbors around them, but they definitely enjoy less traffic.
People want to feel safe. If your neighbor covers the windows with sheets instead of regular window coverings, and you hear cars coming and going at midnight, you might be living next door to a drug house, especially if the flashing lights of police cars are readily visible at any given time.
Name me one person who wants to live next door to a nuclear power plant, and I’ll show you a mutant moron. Few home buyers want a transformer in their yard, either. If the neighborhood was built on a landfill or was recently swampland, nix it. Always order a natural hazard report when buying a home.
The part of the country you choose to live in will have a major impact on your lifestyle. Particularly if you want to stay in your home for a long time, make this decision very carefully, taking into consideration the factors that are most important to you, like average home prices in the area, job opportunities in your field, proximity to loved ones and climate.
Thank you for the post! It was very informative. I think that it is important to purchase a house with a great location. If you don’t have access to basic things, like parks and shopping, that can be difficult. I prefer living in an urban area rather than a rural one.
I am a renter and live in great neighborhood in Portland Oregon. Our house sold when it wasn’t even for sale. Then the new owner turned around and sold it before he owned it. The day it was put on the markey and the second person to walk through is buying it all because the price was right and the neighborhood is even beter.
My niece is suffering from a bad case of buyer’s remorse right now because she bought a lovely home in a great location…for a couple who has kids and work in the suburbs. She, however is single and socialized in the city — where her job is also located. Now she’s a miserable commuter. She would not be in this situation if she had read your article first.
I agree, location is definitely key. A home can increase threefold or tenfold depending on where it is located. It also depends on where you want to live, in the city centre or in the suburbs. I think at each point of your life, you re-evaluate your needs.
Sometimes people have to go through a bad experience of purchasing the wrong home before they become aware of what is really important, which is sad because then they have to suffer for a while. Some are lucky and make the right choice.
I think the psychological benefit of the right location can’t be overlooked. And, as many others have said, taking into consideration your lifestyle, your wants and needs is so crucial.
The dream home that is too far away from the city may eventually wind up feeling very confining and isolated.
I learned the hard way how much of a city person I am when I opted for an apartment that was less expensive but too far away. Fortunately, though, I was a renter with a one-year lease, and not a buyer.
So many considerations, even just within “location.” It is probably the single most important factor, whether it be for nearby schools, nightlife, views, anything. The house itself in most markets isn’t quite as important as the area in which it resides.
We bought our house because of schools and proximity to our jobs.