Real estate is a steadily growing sector everywhere in the world. You can expect an increased ROI if you have invested in property. Nonetheless, the hike in value and the time it takes to deliver a decent return would depend on several factors.
You should be careful enough to invest in the right property! Otherwise, the sale itself would be difficult, forget returns. There have been people who were forced to sell off their homes or land at a loss when they had urgent financial requirements. Avoid such complications by applying some basic rules.
9 Important Factors That Affect The Property Value
A meticulous approach would be of great advantage to you in the future. The concept is the same for every property; be it villas in Thrissur, an apartment in Kochi, or a house in Kottayam.
Here we begin the things that affect the value of a property.
Location is the first thing you must check. Don’t fall prey to the land dealer’s sweet words or succumb to their marketing skills. You never know about the future. What if you have to sell the property immediately to shift to another place for career requirements or any other purpose? A wrong location would spoil the possibility of profit. Go for a prime location, well-connected with the main centers of the city and in proximity to good hospitals and educational institutions.
Age of The House, Villa, or Apartment
How old is the house, villa, or apartment? The old the home, the less the value it can fetch. The maintenance factors, the construction pattern, and the overall strength of the building are price-determining elements in this case. The property at a prime location would offer a better value than the one on the outskirts. For example, villas in Angamaly will be of more value, being at a prime spot, than the one at a remote location.
Design, Space, And Overall Construction
How much is the carpet area? How intelligent is the design? What are the amenities available? What is the sanitary and electrical brand specification? These all points would be decisive in finalizing the value of the property.
The buyers would check the home and decide upon purchase depending on their space requirements. If you are the buyer, you must make note of this point while inspecting the property for purchase.
The Demand of The Property At The Specific Locality
Some areas possess a high demand for property. There are many reasons for this phenomenon. The location may be close to main centers, the low availability of property in the subject area, and so on. It would be nice if you can own property in such a locality. Higher the demand, the higher the value.
Housing trends are changing frequently. The same is the case with the fittings, plumbing accessories, sanitary, electrical installations, kitchen designs, and overall appearance. A home that has been renovated timely would possess a higher value than one of the same age without such enhancements.
Type of Land and Approvals
Hopefully, your property is in the land permitted for house construction. In case there are any legalities involved, the value of the property would go down substantially. Check that the property has all the approvals and all the documents intact before you buy a villa, apartment or house.
It would be better if you choose a reliable builder for buying the property. So that you can buy the home without any confusion or tension regarding the documents.
Possibility of Upgrades
The property that holds a possibility of an upgrade by the new buyers will be better preferred. Everyone wants the home to be of his or her choice, right? The property that has a possibility for improvement would have more buyers and hence more valuable.
Generic Real Estate Condition
To be precise, the real estate sector was in a state of hibernation during the first wave of the COVID pandemic. The property sector slumped so much so that the Reserve Bank of India had to introduce many perquisites to boost the sector.
Presently, the property sector is slowly returning to normalcy and the transactions are increasing. The general condition of the market will have a direct implication on the value of the property.
Interest Rates And Ease of Home Loans
Home loan interest rates are fluctuating. It touched an all-time low in the initial quarter of 2021, with the banks competing to find clients. The home loan interest rate was revised recently, and it is a notch up from the previous rate. Even then, the home loan interest is good presently.
The banks are welcoming homebuyers and processing the applications quickly. The value of the property will be high during such a scenario. Since many would decide to buy homes considering the favorable conditions.
Are you looking to buy a home?
Choose a credible real estate builder, confirm the above-mentioned points, inspect the property and book it. Nowadays, many builders offer assistance to process a home loan from reputed banks. Therefore, you can own the home without any issues.
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