Location, Location, Location

New Rules for Successful Investing

1. Location, Location, Location

This is part of a series that is being posted to my website because blogs read backwards and this item needs to read forward. You may read everything published to-date at http://www.segrestrealty.com Hit the “Investment Guidelines” link.

This sounds like an old rule; but it has a whole new meaning. For retail properties is means a high traffic, good visibility, easy access location. Industrial Properties need linkages to rail and other transportation and affordable utilities and access to suitable employees. Residential, especially 2nd homes, need really easy international access. Some type of attraction must be available, such as beaches, mountains, golf courses, etc.

The location must also be considered from an environmental aspect. Beach properties need to take in consideration the possible rise of sea level and the availability of insurance. Agricultural properties need to factor possible changes in temperature and moisture. Any property that requires irrigation, should anticipate huge spikes in the cost of water. A 1 degree increase in the average annual temperature can change the suitabilility of land for a type of crop.

Political risk is also becoming more and more a consideration. How likely is a huge political swing to occur? What will be the implications of such a swing? How satisfied is the general population with the status quo? What are the rules for ownership and how likely are they to change? These are all important questions for the new investor. No one is immune to the consequences of fanatical forces.

There will, for quite a while, be a lot of properties chasing not too many currency units. Only the “necessary” properties will have good markets.

David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/