Do a quick reasoning with me. Think of your kind of property – could be luxurious houses or bungalows or just landed property.
Now go all the way back to history.
Now what do you notice?
If you did the reasoning right, you see the iconic investors invest in landed property.
It’s just for a reason…It’s appreciated over time.
My point is that the ones that get really big understand landed property appreciate, not depreciate.
Also, it’s a long-term investment.
So, let’s talk about factors that affect property value.
Location of the property
The location of a property is one of the most significant factors affecting its value.
Properties in desirable areas, such as those close to amenities, good schools, and transportation hubs, tend to have higher values.
The overall state of the real estate market can impact property values.
During a seller’s market, where demand exceeds supply, property values tend to rise.
Conversely, during a buyer’s market, where supply exceeds demand, property values may decrease.
Property size and layout
The size of a property and its layout can influence its value.
Larger properties generally have higher values, as they offer more living space.
Additionally, an efficient and functional layout can enhance the property’s value.
Condition of the property
The overall condition of a property, including its age, maintenance, and any needed repairs or renovations, can impact its value.
Well-maintained properties in good condition are likely to have higher values.
Recent sales prices of similar properties in the neighborhood, also known as comparable sales or “comps,” can influence the value of a property.
Buyers and appraisers often consider these sales to determine a property’s worth.
Upgrades and amenities
Properties with desirable upgrades and amenities, such as updated kitchens, modern appliances, energy-efficient features, or recreational facilities like swimming pools or gyms, tend to have higher values.
Economic conditions, such as interest rates, inflation rates, and employment rates, can impact property values.
Favorable economic conditions generally lead to increased demand and higher house values.
The presence of infrastructure developments, such as new roads, public transportation, shopping centers, or parks, can positively impact property values.
These improvements enhance the desirability and convenience of the area.
Crime rates and safety
Low crime rates and a safe neighborhood are attractive to homebuyers, leading to higher property values.
Areas with high crime rates or safety concerns may experience lower property values.
Properties located within highly rated school districts often command higher values.
Many buyers are willing to pay a premium for access to quality education for their children.
Properties near natural attractions, such as waterfront views, scenic landscapes, or proximity to parks and nature reserves, tend to have higher values.
Similarly, properties located in areas prone to natural disasters, such as flood zones or earthquake-prone regions, may experience lower values.
Planned or anticipated developments, such as new commercial centers, transportation expansions, or community improvements, can impact property values.
Positive future developments can drive up property values, while negative developments may have the opposite effect.