Engineer, Investor, Entrepreneur · Newtown, CT · Member since 2014 · 111 posts · 37 votes
I am currently looking at a multifamily unit within a 1/4 mile of an elementary school. I'm wondering if the proximity to schools would tend to have a positive/negative effect on sale/rent prices.
While we are on the subject, are there any other structures (e.g., cemetery, open space/forest, police station, Walmart vs. Whole Foods, etc.) that would have definite pluses/minuses in the perceived value of real estate? I feel like this would be a question aimed at more experienced investors who have bought/sold several properties.
Rental Property Investor · Where we are parked · Member since 2013 · 584 posts · 178 votes
12y
Hi Rob,
Most of these are going to be a matter of opinion from the end buyer or renter. For instance, many people find it desirable to be close to a school. However, if someone does not have kids, and is not planning on having kids (or just doesn't like kids) then they may not like a place close to a school. The same is true for police/fire stations. Some people like to be close to them for security reasons, others don't want to hear all of the sirens. I haven't heard of too many people who don't like being near open space/forest but there's probably someone out there.
A real estate agent may have more specific feedback but again I think it's going to depend on the end buyer and/or renter. If your building is close to all of those items you will appeal to some and will lose others. If your property is far from all of these amenities you'll still appeal to some and lose others.
I think the only one you listed that I think might have a majority of people list it as a turn-off would be a cemetery. Personally it wouldn't bother me, and I've met others who like the quiet and privacy but I have heard a lot of people say they wouldn't like to live near a cemetery but that is usually when it's out their back window or right across the street. If it's just "in the neighborhood" it's probably not such a big deal.
Engineer, Investor, Entrepreneur · Newtown, CT · Member since 2014 · 111 posts · 37 votes
12y
Okay, thank you Rolanda and Eric for your responses. I guess it does kind of depend on the buyer/renter's personal situation. I personally wouldn't want to live near a fire station (sirens), but hey I guess some people may like that...
Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
12y
@rob
@Rob Brautigam it depends on who your target audience. If it's families with small kids then the property would be perfect for them. If it's young professionals then not so much. Think about who would rent and then you'll be able to answer that question.
Re: other structures, anytime I'm visiting a new market I always look to see where the closest McDonalds and WalMart is and when they were built. That gives me an idea of the growth patter that smart Fortune 500 execs think is taking place. If there's a more high-end store like a Whole Foods then even better.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
12y
While it is personal preference for most things it also depends on your area. If you are in a hot city market you are going to expect to be closer to things. In the suburbs the expectation is you won't be next to a store or commercial area. Most people like being by open space but the real test is what is it used for? Is it a park with heavy use or a few trees and a path in the woods? What is the residential impact? If you are next to a church that has light activity no problem , if it is hopping all weekend and has no parking well that is a problem for most people.
Appraiser · Member since 2014 · 40 posts · 20 votes
12y
@Eric Black and @Joe Fairless and Colleen give some great feedback. If I were to add anything, I would expand on @Joe Fairless comment and say that your "target audience" is most likely those who are renting at the property right now. Maybe surveying the tenants and/or landlord would be a good source. They are, on a level, market participants in that area.