Whether you are selling or buying an investment property or home, you need to consider what the property is really worth. So what are the factors that affect property value?
Check this out! Find out what drags property values down, what drives them up, and how to evaluate what your investment property is worth.
1.Title of The Property
Secondary markets may see property value impacted by the title of the property in certain circumstances of a leasehold property. Normally, freehold properties or lands are higher in value than those of leasehold as leasehold property will experience decline in property price beyond 25-30 years of its original lease period.
2.Size of The Property
Size really matters. The bigger the property, the more it’s likely to cost. In Malaysia, price per square foot is usually used to define or evaluate the market value of a real estate property. For instance, a 1,000 square foot home sold for RM600,000. The price per square foot would be RM600.
3.Age and Quality of The Property
The newer the property, the more buyers would be willing to pay for it since it does not require any refurbishment or repairs. Most of the people would rather buy a 15-year old house that is well maintained than a newer one that needs major renovation.
4.Location and Accessibility
The location of your property is one of the most important factors that affect real estate values. Is it close to restaurants, schools, medical centers, retail shops, public transportation (MRT station, LRT station, monorail station), and other neighborhood amenities? Is it close to city center? Any future development?
The more popular and accessible an investment location is, the more valuable the property will be.
5.Future Development
Future development can be considered as one of the big impacts on property value, as it will create a good opportunity for value growth.
6.Supply and Demand
The push and pull of supply and demand has a major influence on the value of property. If there is a high demand but low supply, the price of properties will rise as more people attempt to buy. While in contrast, high supply but low demand, prices will start going down.
7.Economy
Positive economic conditions not only mean people have more money to purchase, but a more positive attitude towards investment in significant financial commitments such as property. For instance, high interest rate and high unemployment rate will lower down the property market transactions, as people cannot afford the monthly mortgage.
If you wish to buy or sell a property, do not hesitate to contact us for more information.
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