[fb_button]As Chicago housing prices finally begin to climb, investors are hurrying to take advantage of the end of the housing crisis era. Deals are being snatched up all over the city, but keeping the ever-important “location, location, location” in mind is absolutely crucial to the success of your real estate investments.
Most guides about buying property begin with a single imperative: that compromise is inevitable when buying property, but that the single thing you should never compromise on is location. Location affects everything, from initial price to rent potential, from safety to style, from investment growth to ease of resale.
When thinking about potential locations for your next investment, ask yourself what level of risk you are comfortable with. A typical Catch-22 situation occurs. Real estate in prime locations is a relatively safe investment, as it is guaranteed to remain in demand and slowly grow in value. Property in less popular areas can be bought at a significant discount, but will be harder to rent or sell, and there are no guarantees about which way the price will go.
Before you buy real estate in a neighborhood you don’t often frequent, it is a good idea to speak with some local property owners, or even a property management company that services the area. They should be able to give you an idea of what the return on investment is like, as well as tip you off on other potential issues, such as neighborhood hot and cold spots, safety concerns, and local government idiosyncrasies.[fb_button]