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There’s an old saying in the real-estate game that location is everything. If you’ve ever shopped around for a new home, you know this is true. Based on city or even neighborhood, the very same type of home in the same condition can vary by hundreds of thousands of dollars. So, what makes one location so much more valuable to home owners than another?
One of the most important considerations is the job market. In areas with plenty of opportunities for employment, buyers generally have more disposable income and are more likely to pay a premium to be within a short driving distance of their work. On the other hand, if there are no jobs around, the majority of buyers will be locals and people looking for retirement homes. These individuals can afford to wait for a bargain to hit the market or look elsewhere. Great school systems and convenient shopping are other features that can make one area more expensive and more valuable than the next.
In areas that are known to be hot vacation destinations, home values are higher than just about anywhere else. Oceanfront properties, mountain-top retreats, and anything near other popular attractions are always good investments. Many people find that these homes pay for themselves if they choose to rent the property by the week or the month to tourists. This way, the mortgage is paid, and the owners can still enjoy several weeks in the home during their vacation time. It can be the best of both worlds.