What de­fines the value of a prop­erty?

Whitsunday Times - - REAL ESTATE INDUSTRY NEWS -

THE true worth of a prop­erty can mean some­thing dif­fer­ent to ev­ery­one, es­pe­cially when emo­tions are at­tached, but there still are a num­ber of un­de­ni­able fac­tors that can give one prop­erty a valu­able edge over an­other, says Mort­gage Choice..

Whether you’re look­ing to buy or sell a prop­erty, un­der­stand­ing how it might be priced could make or break your de­ci­sion to act.

Lo­ca­tion. Lo­ca­tion. Lo­ca­tion.

Prox­im­ity to ameni­ties, a sub­urb’s rep­u­ta­tion, its vibe and whether lo­cal fea­tures like parks are well kept by the lo­cals and coun­cil, can all make a sig­nif­i­cant dif­fer­ence to a prop­erty’s value.

Size mat­ters

The size of a prop­erty will usu­ally im­pact its price, be­cause the space de­ter­mines how many buyer types, such as fam­i­lies, a prop­erty will ap­peal to.

Job op­por­tu­ni­ties

This is so im­por­tant — em­ploy­ment op­por­tu­ni­ties in the area can act as a draw­card for fu­ture buy­ers.

In­fra­struc­ture ac­tiv­ity

Keep a close eye on cur­rent and up­com­ing in­fra­struc­ture ac­tiv­ity in your tar­get lo­ca­tion.

Con­struc­tion ac­tiv­ity

While res­i­den­tial con­struc­tion is boom­ing in some ar­eas at the mo­ment, as buy­ers take ad­van­tage of lower in­ter­est rates and apart­ment de­mand, it may not al­ways be that way. It’s a good idea to as­sess how much new devel­op­ment is ac­tu­ally hap­pen­ing and whether it is fo­cused on units or de­tached homes.

In­ter­est rates

As we have seen in re­cent years, record low in­ter­est rates have driven up prop­erty prices in many pop­u­lar ar­eas. Con­versely, when rates are high, prop­erty prices tend to suf­fer so you should think about how fu­ture changes to in­ter­est rates may im­pact the value of the prop­erty.

Mar­ket pric­ing

The fi­nal fac­tor to con­sider is the sale price of a sim­i­lar prop­erty in the lo­cal area.

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