Often times, homeowners pay close attention to features, style and functionality of a property before making their proposed purchase, deeming these aspects enough to make the investment on a property they believe will surely appreciate in value in the years to come. However, the truth is very far from this. In actuality, as a property ages, its physical structure and aesthetic value depreciate.
The value of a property has more to do with the land it is built upon rather than its aesthetics, and the factors that determine the value of land in the long run include: –
Proximity To Workplace
People working in cities look for houses that are closer to their workplace to save on the unnecessary time they spend on long commutes and traffic jams. As is the general scenario, real estate developments also crop up in areas that feature workplaces and popular firms. So, even if the property you are looking at is not the fanciest, its proximity to offices will have a positive impact on its value, which will only increase with time.
Closeness To Amenities
Location is a big factor when it comes to determining the value of a property. Houses situated in prime locations have high resale value, which is also the rule of the thumb. Hot spots generally have schools, hospitals, police stations, banks, and ATMs located at walkable distances.
Other than that, properties featuring parks, recreation centres, and good shopping options also remain in huge demand, any time of the year. People do not like having to cross half the city to get to amenities such as the above. So if you find a property that is close to these infrastructural facilities, you should go for it.
Availability of good roads in and around the property and its distance to metro stations, bus stands, railway stations and airports are also top regulatory factors with respect to price of the property. Houses and retail stores quickly develop around these areas due to easy accessibility and huge demand. Hence, if a property stands in a location featuring any of the above-mentioned, or is deemed to do so in the near future, you can expect it to have good long-term resale value.
Organized Neighbourhood With Low Crime Rate
No one likes to purchase a property in an area that does not ensure safety to their lives and homes. Locations that exhibit unplanned housing, interruptions from disorderly bodies and legal hassles are among the locations you should avoid in any city or town.
Hence, when looking for a property that is a good long-term investment option, make sure to check out local newspaper websites or municipal police department records online regarding safety in the locality.
Track Record Of Rising Home Price
Again, properties with a good track record when it comes to resale value are good investments too. Property tax records of a place reveal the sale price history of a property. While some countries display this information online, other ways to learn it include consulting real estate agents.
Purchasing a property that has a declining resale value can prove to be a major setback to your net worth. Hence, make sure that you check out the above factors before you decide on a property purchase, especially if it is from the perspective of investment.