By and large, people have the notion that the value of a residential property rises over time. Without a doubt, this is a rationally right viewpoint and in fact, has been supported by years of real estate sector data that confirms the growing prices with the passage of time. This write-up focuses on the four major factors that have an impact on valuation of Residential Property.
Factors That Influence The Value Of Residential Property:
The Size Of The House: All other things being constant, a residential property smaller in size will provide a higher Return On Investment (ROI) as compared to the larger property. To make it more precise, let’s assume that the small as well as large sized houses are situated in the same locality on equally sized areas of land. Now let’s assume that the smaller house is just half the size of the larger house, and for that reason is valued at half the price. While the value of the land underneath both the properties appreciates, the value of both the houses will increase too. The dissimilarity is, since the respective values of the lands are going up by the same amount, the Return On Investment on smaller house will be almost two times that on the larger house.
The Location Of The House: There is no surprise in the fact that the location of a property has a lot to do with its value. This is correct not only for the houses situated in particular cities, but also about their locations within their respective areas. For instance, houses situated in the outermost nooks of a cul-de-sac street (with only one inlet or outlet) are likely to have higher valuation as compared to the ones located in a busy street. As well, the houses located near schools will also have higher valuation.
Growth And Development: The on-going as well as the projected developments near a specified house have a huge influence on its value. For instance, if restaurants, metro stations, hospitals, theaters, malls, schools and likewise structures are expected to be developed around the community, the houses for sale in that particular area are likely to draw high bids from the prospective buyers.
The Aesthetics Of The House: Though aesthetics exactly don’t have much to do with the increase in the value of a house, yet to some extent they add to the number of potential buyers. The installation of new hardwood floors and countertops, renovation of the roof moderately, etc. increase the value of a house.
Keep in mind the above-mentioned factors while Buying Residential Property, if you really want to see it being appreciated over the time.