Is your property a good investment? Let's find out
Sometimes because of some outside factor or simply over time, real estate can go up or down in value. Let's find out how much more or less expensive your home has become.
Factors that affect value
Capital appreciation is something you should focus on to figure out the change in the value of your home. This figure depends on the following factors:
- New construction in your neighborhood.
- Changes in land use laws
- Infrastructure improvement projects
Real estate becomes a good investment when capital appreciation in your neighborhood becomes higher than the profitability of other assets.
Together with the development of the urban environment, the availability of public services, and the location of your home, real estate can go up in value in a big way.
Let's also analyze other factors:
- The rate of return on assets (risk-free)
- Inflation
- The exchange rate
- Capitalized Yield
- Price forecast
If you want to keep your investment, keep your real estate
When you decide to buy a house, you are buying not only a place to live, but also an investment in your future. You have a valuable asset that can add significantly to its value in the future. So if you want to choose the best option, always take a good look at all the factors.
First, figure out if your property has commercial value. How much square footage is present in your property, and whether that amount is in line with the neighborhood average.
It is also important that the property be maintained in good condition at all times. Constantly inspect, and if necessary, repair your property to get rid of various defects.
The impact of a neighborhood on the value of an investment
Over time, your home should begin to provide all the amenities you need to live comfortably. If the neighborhood is constantly evolving, preserved homes will seriously increase their value.
Of course, improving infrastructure is very important for neighborhood development and increasing the value of your property, but sometimes development can be a problem. When a neighborhood gets a lot of roads, it can devalue the value of your home.
Some projects will definitely increase the value of your property:
- Development of alternative transportation options (public transportation, bike lanes).
- Addition to the quantity and quality of services.
- Repairing streets and sidewalks.
You can get a rough idea of how much your property is going up in value on your own, but an experienced consultant's opinion would be better to tell you which properties might be a good investment in the future.
Was this article helpful?16 Posted by: 👨 Joseph N. Lewis
