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What Makes a Location Ideal for Real Estate Investment?
May 2, 2025
Location is one of the most important factors in real estate success. In this video, we talk about what makes a place profitable—covering rental yields, appreciation potential, and how to research the right area. Whether you're a first-time buyer or an experienced investor, this guide can help you make smarter choices. Learn more here: 👉 https://real-estate-crunch.com/how-to-find-the-best-location-for-real-estate-investment/ #RealEstateCrunch #RealEstateInvestment #PropertyInvestment #InvestmentTips #RealEstateTips #RentalProperty #PassiveIncome #LocationMatters
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[Music]
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hi this is Anita from Real Estate Crunch
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When people talk about real estate we
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always talk about location location
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location And you might ask well why is
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location so important well first of all
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let's talk about the importance of
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location in real estate because the
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location or where the propertyy's
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located will affect the value rental
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income and potential for
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appreciation Here are some reasons why
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location is important First of all
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property value that you know high demand
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locations the property value will go up
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Rental demand a desirable location will
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attract tenants and you know ensure that
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you have a steady rental income if
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that's what you're looking for
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There'll be resell potential because
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people want to buy in that area and
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there'll be economic growth there
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meaning there'll be thriving businesses
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and others that will want to be able to
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you know come to that area and buy
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property Here are some things that make
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a location ideal for investment One
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would be economic growth and the job
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market If you're in an area which
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doesn't really have much of a job market
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not much economic growth there's not
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much economic outlook real estate is
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probably not very high there unless
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you've got something that people want
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like you're you know on a lake or you're
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in the mountains or it's somewhere where
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people want to
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buy you know for look for cities you
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know with that have growing industries
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and diverse uh job opportunities
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presence of major employers and business
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hubs low unemployment rates and rising
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income levels Population growth and
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demographics are also important Are
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people moving to the areas or migration
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happening what are the age and
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demographics of the households of the
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people that are there is it you know
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young are there older people is the
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demand for rental versus owner occupied
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homes how's the infrastructure are
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people able to get on highways is there
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transportation is there airports are
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there new roads are there schools being
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built are there other essential services
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being built there are there hospitals
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and shopping center and other things
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that people would be looking for you
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know how's the quality of the
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neighborhood itself is it is it low
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crime is it safe is it good schools you
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know good schools is really important
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where you know people want to put their
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children in good schools So even if you
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don't have children in school being in a
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good school district can be essential Is
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it near parks recreational facilities
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entertainment centers you can also look
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at the other things like what what has
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been the market trends and have the
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property values been going up have they
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been going down what's the current
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supply and demand and what about the
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rental also you can look at government
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policies and incentives Are you know are
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there tax benefits for investors or or
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landlords are there zoning laws or land
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use regulations is there incentive for
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new development and
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businesses how is the cost of living in
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other words you know is the cost of
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living too high are people able to
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afford it or are the wages so low and
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the cost of living's high that people
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can't afford to live there this is also
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very important Look at things like the
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cost of living index the housing
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affordability rates property taxes And
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one of the things I want to add here too
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that you need to look at today
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especially in certain parts of the
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United States would be things like water
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Are there going to be areas that going
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to have water problems or other types of
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you know issues with the environment
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that you might want to look at and you
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know make make sure of that is not a
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factor You know how you can do some of
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your research is you can look at online
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real estate platforms you know just look
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around the neighborhood see what things
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are selling for Do some online what I
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call soothing or you know like look at
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other property and um you know take an
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online virtual tour or whatever to kind
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of see what's going on and look at the
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area and see if it might be the type of
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area Analyze local economic reports and
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census data You can actually go in and
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look at some of these reports and the
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census data and see what's going on
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Visit the location and contact field
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research This is really important You
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know do your homework You know don't
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expect someone else to just do it for
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you You do your own homework and you
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decide if this really is an area that I
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want to live or invest in Network with
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local real estate agents and investors
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Talk to people What's the market
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condition and you know you don't have to
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choose the first real estate agent you
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find You can actually find many
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different real estate agents before you
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decide on one that you want to pick
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Study market cycles and trends you know
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find out you know what's the trend of
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the market now is are you buying at a
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when when things are high are you going
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to you know will things go lower find
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out a little bit what are the trends
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going on you know identify the best
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opportunities in real estate You should
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look at things like emerging
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neighborhoods You know like are there
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new businesses coming in are there new
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schools coming in how are the home
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values going you know look for
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fixeruppers and prime locations
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Sometimes you know a fixer upper if
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that's what you like to do could be a
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great way to get some real real estate
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investment College towns and high rental
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demand areas usually college towns have
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high rental demands You'll find out is
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the university struggling or the college
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struggling are students leaving or are
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students coming in are the you know is
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the school building new buildings are
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they building new departments new
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facilities that could mean that there'll
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be a higher demand suburban growth and
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expansion areas You know is it commuter
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friendly is there good transportation
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can people get around easily if you're
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looking for vacation or short-term
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rentals is the kind of place people want
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to go to are they going to come to that
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place you know some of the common
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mistakes that people make when it comes
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to real estate is they ignore the market
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research They go on their gut or their
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feeling or they make an emotional
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decision and they ignore the market
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research They overlook local regulations
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and zoning laws Maybe somehow they think
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the laws don't apply to them or aren't
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going to apply to them So they overlook
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all of this They invest based on
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personal preferences They say "Well
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here's my personal preference." And they
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don't really invest based upon sound
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decisions They underestimate maintenance
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costs and property management costs or
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HOA fees or other things like that And
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they end up getting strapped in a
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property which is much more expensive
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than they ever thought there would be
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They neglect economic and population
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trends they don't really look at those
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and they don't really put much value
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into them and so they end up with maybe
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a property which becomes harder to sell
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because there's so many out there on the
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market We've written a blog on this
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which is entitled how to find the best
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location for real estate investment This
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one's actually for real estate
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investment itself but it can also mean
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for you buying for yourself or if you're
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buying a property to be able to rent in
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some way If you'd like to be able to
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learn more about this you we will put
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you a give you a link
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in our description below so that you can
7:13
be able to check out our our blog post
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7:17
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