How an Area Can Affect the Value of your Property
Have you heard this question, what is the going rate of a three bedroom bungalow in Dallas vacant property for sale? This is an indication that prices of similar properties differ according to neighborhood. The price of the same three bedroom bungalow will be different in New York. In real estate business, the location of a property is very important; most times people consider it more than the house details. It is very important to consider the area you want to site or buy your property if you want to enhance its value. Once you have it, the next thing is to maintain it very well. You have control over your property but you may not be able to control the external factors affecting its value example road, security, power supply etc.
Let us analyze how your neighborhood can affect the value of your property.
· Highbrow Areas vs. Decrepit Areas
The values of properties in highbrow areas no doubt are higher than the ones in slums because it is more expensive to build and maintain a property in the highbrow areas. People are always attracted to the highbrow area because of amenities or ego. The ones on ego trip will always boast with the place they reside. These highbrow areas are also associated with wealth and social status.
· Security and Safety
This is another cardinal reason why people chose where they stay. People do not want to live or invest in areas that are prone to crime as you are bound to lose your life or property. Research has shown that the value of properties in places with high crime late is always low because people are not always fascinated about such areas.
It has also been proven that people are willing to spend more investing in areas where there are businesses. Search the prices of properties in business districts, it’s always high and can only be compared to residential areas exclusively meant for the rich. The reason is simple; people see property in such areas as investments that will yield higher returns.
When you hear about urban migration, it’s just about people relocating to other areas in search of greener pastures. People move in droves to places where there are more employment opportunities and they are always willing to pay more for properties in such places. There by raising the value of properties in such places.
People are also attracted to areas where there are schools because they will want their Children and family members to have easy access to school. Parents or Guardians do not want to travel far every day to take their Children or wards to school. Therefore, schools within their community save them from unnecessary cost and inconvenience.
· Clean Neighborhood
You may take the pain to keep your property clean but your neighbors are not doing the same, this will affect the value of your property negatively. Interested buyers may be turned off immediately they enter the neighborhood even before getting to your property. Have you heard someone say, the property is beautiful but I can’t live in this neighborhood? No one wants a dirty, noisy or unruly neighborhood.
· Price of Similar Property in the Area
The value of similar properties in your area determines the value of your property. People will be willing to offer you the same amount of money comparable properties in your neighborhood are going for or a price slightly higher or lower depending on the state of your property.
In conclusion, to become an efficient real estate investor, you have to understand this theory of how your neighborhood affects the value of your property and be guided by it in buying properties.
About The Author
Rachel Stinson has always had a knack for writing, food, fashion, home improvement and sports. Blogging has combined all four for her with an added bonus of enthusiastic audiences. She expertly analyzes real estates, restaurant and online packaging stores Dignam.com with respect to pricing and people involved and can express her opinions in an unhesitant, engaging manner for all matters.