OPERATIONS: COMMUNITY IMPACT
How Real Estate Investing Contributes to Communities REAL ESTATE INVESTING IS NOT JUST ABOUT FINANCIAL GAINS, IT’S ALSO ABOUT POSITIVELY IMPACTING THE COMMUNITIES IN WHICH THE PROPERTIES ARE LOCATED. JOHN V. SANTILLI
R eal estate investing is not just about making profits. It also significantly impacts the communities in which the properties are located. From increasing property values to creating jobs and improving infrastructure, real estate investment plays a vital role in enhancing a community's overall quality of life.
Investors often renovate properties, adding modern amenities and upgrading their overall appeal. Housing upgrades today are fueled by the demand for more space; bedrooms; bathrooms; amenities like washers, dryers, garbage disposals, fireplaces; and even safety upgrades. These improvements not only attract potential buyers or tenants but also enhance the visual aesthetics of the community. With well-maintained properties and rising property values, the community becomes a more attractive place to live. As the accompanying table shows, many current homes were built before 1980. These homes are ripe for rehab investing. MORE JOBS Real estate investing also creates new job opportunities in a community. When investors renovate properties or build new ones, they employ skilled tradespeople. Construction workers, electricians, plumbers, and other professionals must complete these projects. The influx of new jobs helps boost the local economy and provides employment options for community members.
In addition to construction-related jobs, real estate investment can lead to the establishment of new businesses, creating even more jobs. These businesses can range from restaurants and retail stores to office spaces, contributing to the diverse economic landscape of the community.
IMPROVED INFRASTRUCTURE
Let’s take a look into the ways in which real estate investing improves communities and why it’s a win-win for investors and residents.
Another significant way real estate investing can improve a community is by enhancing its infrastructure. When investors renovate properties, they often upgrade the electrical, plumbing, and HVAC systems. These improvements ensure residents' safety and comfort and contribute to energy efficiency and sustainability. As the accompanying table shows, many houses were built before the current codes and standards that keep a property safe for habitation. Validating structural safety and engineering issues is an important first step for any real estate investment activity. These safety upgrades can be considered another element of improved infrastructure
INCREASED PROPERTY VALUES
One of the most noticeable ways real estate investing can help improve a community is by increasing property values. When investors purchase and improve properties, it makes the area more desirable and valuable. As a result, the prices of all other properties in the vicinity tend to rise. This increase in property values benefits not only the investors but also the homeowners in the community. Higher property values translate into increased equity and wealth for homeowners, giving them more financial stability and opportunities.
44 | think realty magazine :: january – february 2024
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