Three Important Facts To Know About Real Estate

If you’ve been in real estate for a period of time, you’ve probably heard that the three most essential factors to consider before investing in real estate are “location, location, location.” 

On national media, I’ve heard globally-acknowledged experts say it over and over. However,  I must politely and at the same time emphatically disagree with that. I believe that the three most significant factors in real estate are “location, time, and circumstances,” and here’s why.

Just yesterday, I drove past a location that I have been driving past for 40 years. On any GPS or map, that location has not changed one inch. After all these years, massive construction has taken place at the location.

What is the significance of this?

I was part of a group of investors who held an option for a year to buy the property few years ago. I was looking for a developer to assist in building a truck stop. Well, I was about two years too early. Unfortunately, my colleagues and I couldn’t meet up.

What actually changed?

Timing and circumstances

For 40 years, the spot was vacant, overgrown, and unfarmed.

The place remained constant, but the timing and circumstances altered significantly.

One of the changing situations is that the second truck-stop at that location is doing far better than expected. They often have a line of cars and trucks waiting to get into it. Because of where it is geographically located, it is the first place for drivers to get gas that is more affordable after driving a long distance.

While location is a major factor, it took timing and circumstances (i.e. a growing, flourishing economy and a demand for more amenities for people commuting on the highway) to make the site viable for development. 

That house had been on the market for at least ten years when the team in which I was part was given the opportunity to purchase it.

Finally, when thinking about investing in real estate, consider the long-term timing and circumstances of that property.

Source: Africanhousingnews

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