Whether you’re planning to invest in real estate properties or you want to increase your portfolio by buying more, one of the things you need to factor in this decision is the property value. Considering that real estate is always a great investment option, knowing what factors can affect the value of a property allows you to force appreciation and try to avoid depreciation.
Additionally, these factors will help you make your decisions when you want to buy your next property. Find out the three critical factors that affect the value of a property when you read it below.
The old adage of “location, location, location” in the real estate industry rings true to this day. Location is the major factor to consider in property value since the economic growth of its area and the surrounding markets either increases it or decreases it.
For example, if the property is located in an area with thriving businesses, various conveniences and entertainment like the flourishing city of Phnom Penh, then the property value will be high on average. On the other hand, if the real estate is in an area that is still being developed, the property value will be cheaper than in other areas.
Moreover, if you want to invest in a property, you don’t necessarily have to buy one from a high-value area. You can buy real estate property from a cheaper area with promising developments in the coming years so you know your home investment is guaranteed to appreciate.
Home size and space
The size of a real estate property is a considerable factor in its value. After all, the smaller a property is—even considering its location—the cheaper its price. The same logic also applies to larger real estate properties regarding its cost. Additionally, the cost of a home is often detailed per square meter or foot so you need to know the average price of similar homes in the area to determine if the property you want to invest in is a great deal.
Additionally, the amount of usable space in a property is a major component in the property price. For example, if the home has a garage, basement, guest room and more, then that increases the property value.
Maintenance and upgrades
When you already invested in a property, what you do with it in the time you own it can contribute to its value either appreciating or depreciating. If an appliance, fixture or more needs repair, then make sure to have it fixed quickly and continue maintaining the quality of the home so it remains in great shape.
Moreover, do not simply settle down with maintaining the property since upgrading it can force appreciation. Numerous real estate properties with modern and trendy designs are continuously being developed so upgrading appliances, renovating sections of your home and more can help increase its value. Not only that but adding areas like a pool, gym, and others in the property is guaranteed to contribute to it.