Reading · The Real Estate Brief

Location, location, location: the one rule that hasn’t changed since buyers have been buying property.

Everything about real estate changes. Financing rules change. Buyer preferences swing depending on the decade. The shiplap everyone begged for in 2018 already gets ripped out in every renovation I see now. Buyers make offers on a house they toured through their phone at 11pm.

One thing hasn’t moved an inch: location.

I’ve owned and self-managed more than 15 properties over the years. Different decades, different markets, different price points. The ones that made money weren’t the ones with the nicest kitchen. They were the ones in the highest demand locations.

Here’s the rule of thumb I give every investor who asks me where to put their money: buy the ugliest house in the best neighborhood before you buy the prettiest house in a mediocre one.

A bad kitchen is a weekend project. A great location isn’t something you renovate your way into. You can replace cabinets, rip out carpet, knock down a wall. You cannot move your house two blocks over into a better school district.

The worst house in a great neighborhood gets pulled up by everything around it, the neighbors who maintain their yards, the buyer demand for that zip code, the schools, the walk score. The nicest house in a rough neighborhood gets pulled down by those same forces, no matter how much granite you put in.

I’ve watched this play out from both sides. A run-down rental in a strong neighborhood appreciated faster than a fully renovated property two towns over, and it needed a lot less of my attention along the way.

If there were one "magic rule" for spotting neighborhoods with long-term appeal, this would be it: check the school ratings.

You don’t need to have kids at all for this to work in your favor. You don't need to have kids for this to matter. Families drive a huge portion of the housing market, and families care about schools. When buyers compete for homes in those neighborhoods, everyone who owns there benefits.

Interest rates will keep changing. The latest trends will keep cycling in and out. Open floor plans may already be on their way out, by the way. People still want to live in the same places. It just gets more expensive to buy into.

I've made plenty of improvements to houses over the years. I've never figured out how to improve an address. That's why I start with the neighborhood every single time.

Location, Location, Location: The Rule That Never Changes

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