When it comes to buying a house, one must consider the location, the condition of the house, the reputation of the developer, the surrounding environment, transportation, etc. Half of these factors relate to location. It wouldn't be wrong to say that the heart of buying a house is "location". TerraBKK Research often emphasizes that the first thing to consider when buying a house, whether for personal use or investment, is the location.

"Location affects daily life and influences future property value changes."

When we buy a house, after 10-20 years, even if it becomes worn, unattractive, or outdated, we can renovate it as many times as we want. However, "location" is the one thing you cannot change! There is a rule that the TerraBKK Research team found from realestate.com.au regarding the factors that contribute to property price growth each year: 80% is due to "location," while only 20% comes from the property itself. Therefore, it can be said that buying a less attractive house in a good location is more advantageous than purchasing a beautiful house in a poor location. Yet, nowadays, people seem to be more enamored with the beauty of the property rather than the importance of its location.

Today, we won't focus much on the physical aspects of "location," such as being in the CBD, near the subway, close to highways, or situated in bustling communities... these are things we already know. But "location" has more significance than that. It not only provides convenience in daily life but also impacts our mental state without us even realizing it.

Why do some people willingly pay a premium to live in the city center? Why do some choose to pay more just to be closer to a subway station? Why do others spend an amount that could buy a suburban mansion for a less than 100 square meter apartment? I believe it’s because there are both tangible benefits (Functional Benefit) and intangible benefits (Emotional Benefit). For the tangible benefits, it’s clear that urban locations offer more convenience, with all forms of transportation available and shopping malls nearby. But what about the intangible benefits (Emotional Benefit)?

  1. Activity: Traveling becomes easier, reducing commute times and avoiding the frustration of city traffic. Some people spend over 3-4 hours a day on the road, which is wasted time. Wouldn't it be better to buy that time back by moving closer to the city?
  2. Interest: A good location should cater to our lifestyle. If you love shopping, there should be malls nearby. If you enjoy dining out, there should be good restaurants or community malls for relaxation on weekends.
  3. Opinion: How do we want others to perceive us if we live in this location? This is somewhat difficult to explain, but you may have heard about the pride of owning a home or condo. Just imagine owning a condo on Sathorn Road; even just mentioning the location feels impressive.

All of this reflects the value of the term "location", which includes both visible and invisible aspects. Ultimately, every time you consider purchasing property, always prioritize the "location" first. Don't be swayed by the alluring advertisements of the building's beauty.