The Real Estate is widely accepted and appreciated as one of the most profitable investments. It is because of the constantly increasing property prices, allowing investors to enjoy high capital gains.
Considering the lucrative nature of the real estate market in Ontario, every other person wants to invest in it. However, it may not be as easy as it sounds. There are many reasons that can cause property prices to fluctuate. This makes it important for you to be thoroughly aware of all the factors that trigger such changes before going ahead with your investment decision.
So, to help you out in this regard, this article is going to shed light on some of the most important factors affecting property value.
Following are some factors that directly influence the value of a property:
· Property Condition
Location secures the first spot on the checklist of factors affecting property value. Real estate in city centers is more expensive than in suburbs. It is mostly because of the easy accessibility of major facilities and landmarks that are available in abundance in the city center, which ultimately reduces commuting time and distance. Proximity to parks, schools, shopping places, and easy access to the city center; all these factors greatly add to the value of a property.
After location, the next important thing to consider is the condition of a property. It may not be a big challenge for you if you are buying a newly built house. On the other hand, if you are investing in an old residential unit, you would surely go for a well-maintained house instead of investing in a property that is in poor condition.
You do not want to end up buying a house that needs a lot of repair and maintenance, especially if you are paying a good amount of money for it. This makes it very crucial for you to closely inspect both the interior and exterior of the house you are buying. Starting from the paint on the walls, all the way to fixtures and furnishings check each and every corner of the property before closing the deal.
If you come across anything damaged or broken, you can always negotiate the price with the seller. You may probably save a good amount of money if you close the deal at a negotiated price. The money you save here can be used to fix wear and tear in your new home to improve its condition.
Another thing that you should importantly look out for while searching for a property to invest in is the availability of amenities. Conveniences like standby generators, high-speed elevators, ample parking space, in-house community clubs, schools and fitness centers have become a standard.
Older property projects that lack such facilities usually have lower real estate value, which may also not witness a substantial increase with time like the newer developments that are master-planned communities, well-equipped with modern facilities.
The availability of major commuting facilities is also an important factor to consider while investing in a property project. Proximity to public transport service has a very positive impact on the real estate value of a property.
Everyone desires to live in a secure home. As far as the factor of security is concerned, it greatly depends on the location of a particular property.
The emergence of gated residential communities is a new trend. These places offer gated and guarded environments and, consequently, have a higher value in the real estate. Moreover, state-of-the-art alarm and security systems these days provide relief to both buyers and sellers because, again, the safer a property, the higher its real estate value.
Assistant Manager, Real EstateTreadstone Associates