You live in the land of opportunity. You can open a business anywhere. So what factors should you consider?
If you’re contemplating an investment property, it’s important to bear in mind the cost of insurance. Premiums vary greatly by location, and this budget item can have a big influence on your bottom line.
If you have some flexibility as to the area you choose, you may want to consider aiming for more affordable parts of the country.
Do your research and you’ll find that some areas have low average property insurance quotes while others have the highest average quotes in the country. Rates even vary from city to city, so ensure you drill down in the area you’re considering.
What affects these property insurance quotes? Geographic location is a big factor. Your target area, for example, may be prone to hurricanes or tornados. If a region is more likely to see natural disasters, the rates will generally be higher.
Another influence is local construction costs. The cheaper it would be to rebuild your property if it’s destroyed, the lower the insurance quote will be. Each area may have its own local insurance requirements, which can also affect pricing.
With these factors in mind, you are able to better plan the location of your investment. However, it’s also important to weigh other factors that may impact your property search, including access to appropriate transportation; tax rates; the skilled labor pool; and, depending on your business, proximity to your customer base.