Location for house & apartment: strategies & tips for owner-occupiers and capital investors

Where to buy real estate – You want to buy a property and are still looking for the perfect location? The location of your new dream property depends on various factors. Are you buying as an owner-occupier or an investor? What are your personal goals? And when should you invest in which location? We explain to you here what is important when choosing a location and what you need to pay attention to!

Real estate for own use: location

So if you want to buy a property and move in directly, you should like it first and foremost! Compared to real estate as an investment, the rental yield is therefore unimportant. Instead, it is important to think about what you want from the environment of your property. After all, your personal goals and ideas are in the foreground.

Your personal goals are important for the choice of the location

Maintain or increase resale value

In addition, you should always keep the resale value of the property in mind. After all, you may one day decide to sell your dream property again. A professional reorientation, family growth, old age or illness are often reasons for a resale. Our tip: When buying your property, always opt for a (very) good location to prevent any loss of value in the future.

(very) good location = preservation or increase of resale value

A, B & C location: buy dream property outside the city?

Above all, avoid real estate in C-location here. This location is defined primarily by negative economic development, weak infrastructure and low demand. Even if a property in the middle of the countryside far away from the hustle and bustle of the big city sounds tempting, you have to expect a strong loss of value in the future. In the worst case, your property will only be worth the price of the land in a few years.

Important criteria: Infrastructure, cultural offerings & Co.

City or country? Big city or small town? Once you have defined the rough location for yourself, the next step is to determine the exact neighborhood. How good are the connections to public transportation? Are there many cultural offerings? Is the neighborhood safe and quiet? Where is the nearest hospital? These criteria of the micro-location of your property are also important.

Here are some other important criteria:

  • Infrastructure
  • Security
  • Cultural offers
  • Proximity to public facilities
  • Security
  • Cleanliness

Real estate as an investment: Location

You would like to acquire a yield or investment property? In this case, the criteria already mentioned, such as infrastructure, security, etc., are also important, but take a back seat depending on the strategy and goal. While you should definitely look around in B and C locations for a yield property in order to generate direct cash flow through a high rental yield, properties in A locations are particularly worthwhile for investment properties.

Conclusion: Individual goals & personal strategy

So the location of your property depends on both its goals and your strategy. Thus, depending on the type of property, different factors are important. While personal preferences and an increase in resale value are the most important factors for owner-occupied property, the rental yield is the main consideration for income property. And in the case of investment property, it pays to look in A-locations in particular.

If you want to know even more about the respective investment strategies and the perfect locations, then take a look at our guide: