The influences on property value go far beyond the four walls of a home, or the fence around a property. While you may hear the term “location, location, location” frequently among real estate professionals, these three simple words convey a very complex message. When you’re in the Chicago market for investment properties, it is extremely helpful to have a checklist of specific features that make the site a good one.
When it comes to determining the value of a property, an appraiser will ultimately compare your home to the surrounding properties, this points to the significant economic impact that location has on your investment.
Remember, before turning your nose up at an ugly duckling in a great area, you can improve structures and landscaping, but you can not manipulate the factors that serve to improve, or detract from, the location.
We have gathered together the neighborhood features Chicago investment buyers should look for to ensure long-term value.
Diversity
You will find it helpful in narrowing down your choices when you’re diversifying your portfolio, to keep an eye towards the neighborhood features in Chicago that best suit the market sector in which you need to build holdings.
Long-Term
When investing in long-term rental housing, you will find one of the significant neighborhood features in Chicago that renters with higher income have prioritized is to be located in good school zones, which equates to lower turnover. When these properties do become vacant, they are usually spoken for long before a touch-up coat of paint can dry.
Short-Term
For the booming short-term rental market, you may believe the neighborhood features in Chicago you should seek are distance to medical and commerce centers or vacation destinations, which do make highly desirable investments. However, the recent changes in societal norms have made any property eligible, as renters seek distance from other travelers, driving demand for private accommodations.
Convenience
Among the neighborhood features Chicago investment buyers should look for are public transportation, parks, and shopping. While some tenants may prefer an hour-long drive away from bustling city streets, the majority prefer the convenience and time-saving factors because travel plays a large role in most of our daily lives, so proximity to major highways and decreased commute times hold great weight in the value of a property.
Outlook
Investment buyers should look for neighborhood features planned for the future which are geared towards projected population growth in Chicago, these improvements and additional conveniences will increase desirability and raise the value positively over time. On the other hand, could future plans cause a loss in value, such as the possibility that surrounding property improvements could block scenic views or changes in zoning that would have a negative impact on the property?
Demand
The law of supply and demand comes into play in the neighborhood features Chicago investment buyers should look for, scarcity of available real estate in desirable locations increases value. When you purchase in a good place, home values rise over the years, increasing your equity through appreciation. The rental rates will increase accordingly as well. Investing in a good area builds in a buffer against inflation in your monthly cash flow.
Site Features
Now that you have narrowed down the neighborhood features Chicago investment buyers should look for, to add even more value, consider the features specific to the actual site of the property. A great deal of value is added if there are views of the water or other spectacular scenery, even if it’s only from one window. Values increase as land gets nearer water-based activities or within walking distance of desirable amenities, such as sporting facilities, entertainment, shopping, parks, or schools.
Safety
Renters are seeking a sense of security, so investment buyers should look for neighborhood features that show the area in Chicago is safe. Along with investigating the local crime statistics, nothing beats taking a walk around the area and getting a feel for the atmosphere. If you simply cannot be there in person, ask a trusted representative, like a professional from PIP Realty Group, to explore the surroundings on your behalf.
How We Can Help
With a full-service team of top local professionals, PIP Realty Group can guide you through the process of buying your next investment. At PIP Realty Group, our experts know Chicago and will listen to the goals you have for your real estate portfolio, helping you focus on the specific neighborhood features you should look for in successful investments. PIP Realty Group makes it easy for you to build your nest egg with our team of professionals from every walk of the real estate industry. PIP Realty Group can help you manage as much or as little of your real estate investment business as you like, while you enjoy your retirement. And PIP Realty Group has a steady inventory of the best investment properties available in Chicago. Contact PIP Realty Group at 773.233.2301 to learn more!