Purchasing a house can be a great investment- both in the stability and future of your family and, of course, monetarily. As property values tend to rise over time, the money you initially invest is likely to be returned to you and grown larger. While property values tend to be fairly predictable, there are certain variables, which are out of your control, which can quickly change your property value, causing it to either suddenly increase or decrease. By understanding what some of these variables are, you’ll be better prepared to handle them should they ever come up.
Natural Disaster
Nothing can change a local landscape quite as quickly as a natural disaster. If one happens in your area, your property value could be in for a drop. If your home is spared while others are destroyed, the lack of surrounding homes could make the area less desirable, resulting in a depressed property value. Fortunately, however, neighborhoods are often rebuilt after a natural disaster, and these brand new homes in the area can cause your property value to quickly recover.
Golf Course
Buying a property on a golf course can be a great way to enjoy some extra privacy while having easy access to a fun local attraction. Since golf courses are such prominent parts of the neighborhoods they reside in, your property value will always be linked to the success of the golf course. If the golf course falls into disrepair or is purchased by a developer, this could cause your property value to decrease. However, most golf course owners take pride in their courses, seeking to increase their prestige. If they are successful, you can expect an increase in your property value. Similarly, homes within a few miles of a golf course will also see their value affected. It may not be as drastic, but it can easily make a difference that can change your home and finance plans.
Local Development
While the construction of a bunch of new restaurants and shops close to your home can bring some extra, potentially unwanted traffic to the neighborhood, these new outlets can also bring an increase in your property value. Many people enjoy being in the “center of the action,” so if you have a home that sits near a new dining and entertainment complex, you could stand to gain. If the development becomes more than you can handle, you can always sell your home for the new, higher price and find a place with a little more peace and quiet.
In the Know
Even if you don’t plan on selling your home anytime soon, it’s still a good idea to check up on its estimated value from time-to-time. If you see sudden changes up or down, it’s a good idea to investigate any external variables that may have caused these changes. Keeping track of your home value may bring up an unexpected opportunity to sell that you hadn’t previously considered, resulting in a nice profit for you.
