A property purchase is included of several milestones. Once you are ready with your finances to buy a property, you’ve crossed halfway in this journey. Before we buy any expensive product, we need to analyse about the value of the product. Let us discuss the factors that ease up your property purchase.
LOCATION
This is the prior factor impacting your decision of selecting the property. The property valuation based on location is directly proportional to the number of resources, facilities, and amenities. If your preferred location near Commercial hubs, Railway stations, bus terminals, airports, Schools and colleges, Hospitals, clinics, and diagnostics centres, Playgrounds and sports club, shopping malls, grocery stores, and chemists, Fruits and vegetable markets, Cafes and restaurants, Banks and ATMs they can provide high value.
INFRASTRUCTURE
In addition to the infrastructures mentioned above, road developments with connectivity for various amenities and facilities will rise the property value. This is the most important property valuation factor which gives an identity to the property location.
COMMERCIAL ESTABLISHMENTS
Commercial establishments like IT hubs/business parks in the property location significantly have a positive impact on the property valuation. In metropolitan cities, most of the people will buy home nearby their working environment which saves a great amount of time, energy, and money.
PURCHASING CAPACITY
A location which includes commercial hubs will generate more revenue for individuals. This will increase individuals in greater spending capacity than a location having industrial and agricultural zones where affordability is high and hence there is a rise in property valuation.
LAND AVAILABILITY
When the supply is less and demand is more the price increases, this is the basic law of supply and demand. In urban areas and in the large metro cities the vacant land availability is scarce and hence the property value rises.
SUPPLY AND DEMAND
When there is an increase in the populace in a specific densely structured locality, eventually it creates more demand. This will influence more people to buy properties in this locality. But due to lesser supply, the property value rises and vice versa.
TRIO OF PROPERTY PRICES, INTEREST RATES AND INCOME
If any of these rises to the peak then there is a significant change in the property market. If the prices of property rise to the maximum, depending on the location, buyers will search for properties in affordable value in other areas. When interest rates are increased and buying capacity reduces hence property demand lowers.
Furthermore, when the nation’s economy or even the state economy has a tall rise then the income per inhabitant ratio also rises. This also makes a steady impact on property valuation.
STRUCTURE
The factor of structure has huge impact in affecting property valuation. The property price depends on material cost, quality, type of structure, and prevalent rates of labour. However, this factor does not form a major part in the increase or decrease in property valuation unless expensive materials are used.
SIZE AND EXTERNAL VIEW
Size: More the property area, the higher the price you pay. Hence, the larger the size more will be the property value.
External view: If the apartment/villa/house you plan to buy is giving you a beautiful view like a sea-facing flat or a large open area and a horizon mountain view then the value will be high.
CUSTOMIZED PROPERTY DEMANDS HIGHER VALUE
When you ask the developer to make minor or major changes in your prospective apartment/house/villa, then the value will increase. Example, if you need changes in flooring, painting, walls, garden etc and all related changes may increase the value. All of these changes will increase the price compared to the standard property.
SIZE AND USABLE SPACE
The market value of a property is usually mentioned in terms of price per square feet. Besides square feet, a property’s value is determined by the usable space. It is spaces such as bathrooms and bedrooms that can significantly increase the home value.
PLANNING/BUILDING REGULATIONS
Constructing a property today requires building regulations and planning permission. Failure to follow to these regulations could result in a property being demolished. The amount of planning permission and building regulations required can have an impact on the value of the property.
CONCLUSION
On a concluding note, it is important to know what a property is worth before buying or selling. It is better to invest at least 3 months to check all these factors before narrowing down to your final purchase. Also, it’s important to also review other factors such as crime rates and unemployment apart from the factors mentioned above.
