Wednesday, 21 March 2018
Post your listing on Realty Times
This Old House - Do-it-Yourself

4 Keys to Choosing a Home with a High Chance of Rising Value

Written by Posted On Friday, 27 January 2017 15:58

A lot of new homeowners, amateur investors and experienced real estate investors seem to center in on the style and functionality of their projected purchases. They expect style, functionality and improving the two to lead to a jump in property value, and they believe this will inevitably lead to their successful investment. Usually, they are wrong. The slogan about location leading to the property with the greatest investment in the real estate industry still rings true. Here are four keys to choosing a home likely to rise in value.

Smaller or Less Attractive Homes Can Provide Greater Investment Returns

It takes some instinct to understand this point. For example, imagine two houses functioning the same way on identical land parcels. One house will be valued at the maximum price because of fortunate circumstances, and the other will be around half the value.

Now, supply and demand drive land values, so property appreciates the same yearly. Without outside influences, the more attractive house will appreciate at a value half of that of the other because of supply and demand and equal structures. The house with the lower value has nowhere else to go but up, and it will be a cheaper buy.

Locations Within Neighborhoods Will Affect Land Values

Land value appreciation tends to punctuate how important it is to pick between neighborhoods. According to Pew research, the majority of middle-class, upper-class and small-family-home communities limit construction by law. It results in the communities creating their own demographic characteristics, cultural and social distinctions, which end up impacting the demand for the homes.

The Average Age of Neighbors Can Provide Clues to Appreciation

When selecting locations to invest in, the age of neighbors is something most investors do not consider. Younger buyers with kids generally stick with neighborhoods with people in similar circumstances. Parents are aware of the public schools' influence on the demand for homes in a district. Still, the appreciation is still left up to the value of the land and location because the area homes are not homogeneous. It is inescapable.

Future Development Can Change Your Property's Value for Better or for Worse

Current and prospective homeowners have to be aware of current and future amenities coming to your present or prospective locale. This includes plans for hospitals, schools and government plans for creating or changing traffic patterns.

Certain realty companies can be helpful in this department. For example, Cudd Realty offers extensive local information, and local information is extremely valuable. It is advisable to find a company similar to Cudd Realty in your area.

The four headings listed above make perfect sense for a number of reasons. Unless they are historic and constantly restored, there is a simple truth about physical structures no mediocre investor knows or wants to admit. Over time, physical structures depreciate in value. The land the structure is on, and the land surrounding it usually does not. Being able to make the distinction is crucial for investing.

If you do not look at your home as an investment and understand what really drives the value, you will not profit in real estate or get the return you expected or hoped for when you sell your house. Over time, physical structures depreciate in value. The land the structure is on, and the land surrounding it usually does not.

Rate this item
(0 votes)
Anica Oaks

Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she's used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here.

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.