Location is the most important word in real estate investment. At least it is what everyone said so. But for me, location is not justify from the geographical perspective alone. Great location should be justify base on the principle of supply and demand. Regardless of physical condition, government incentive, promotion, or any rumors local opinions, all great location can add up to one and only one simple truth - low in supply & high in demand. Even in the hottest area of your near by downtown, if people just do not like to stay there (low in demand), regardless how great the site look like, or how convenient the location is, it is never consider as a great location.
A great location possess quality of drive by visibility. Drive by is the most effective and cost efficient advertisement means when come to rental property. The more cars that pass by your property and can see the "for rent" sign, the higher chances your investment to success.
The second typical attribute to great location is rare quality. Rare quality such as natural phenomena ie waterfront, great scenery & greenery can draw desirability of people to stay there. It is why, if your unit are facing a city skyscraper, often the price is higher than the one which facing a garbage dump site.
Employment is also a key to great location. People will only move to the town that has plenty of jobs. That is the fact! A place or town or city that is limited supply of jobs couldn't be any better a location compare to a stranded countryside village.
The bottom line is, any evaluation of location, do not caught into the delusion of geographical quality. In the economic term, any investment in real estate should be justified base on the most basic simple rule - Supply & demand.
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