In the business of real estate, some people 'just get lucky' all the time and some people don't get lucky for a long time. You'll often hear comments like, "Luck is on your side and so your property value is increasing consistently". But the question is "Is it really the luck factor that is influencing the appreciation in the values of certain properties or is there something beyond that?". The answer is NO. It is not really a matter of luck. There are a plethora of reasons for why the values of certain properties increase consistently and why some others do not. Here's a comprehensive list of such factors that increase the value of your property. Read on and bust the myth about the luck factor having an influence on the increase in the value of the property. Let's get started.
Factors that contribute to an increase in the value of your property:
The physical and the social infrastructure of a particular location has a great influence on the appreciation of your property. All the changes in and around the property will contribute to a better livability quotient to the residents, causing an increase in the value of real estate properties in that particular location. Certain infrastructural developments like flyovers, schools and colleges, hospitals, new shopping malls, new workspace etc will increase the livability quotient and will increase the value of the property. The better the infrastructure gets, the higher the value of properties will be!
The population growth in a particular locality has a direct impact on the value of the properties. The bigger the population gets, the higher the demand for the real estate properties which translates to a direct increase in the value of the properties. It follows the fundamental principle of economics - The higher the demand, the higher the price! There can be various reasons responsible for an increase in the population growth like a new workspace, new industry set up and so on. So, the infrastructure of the locality has a major influence on the population growth which in turn has a direct impact on the increase in the value of your property.
The upward or downward trends in the value of properties around your property also influence the price of your property. Let's say there is great economic development in the adjacent locality which led to an appreciation in the value of properties around. This will have an indirect impact on the value of properties in your locality. Thus, the infrastructural developments happening in the neighbourhood localities also influence the value of your property.
Inflation is caused by the excessive circulation of money which leads to the fall in the value of money. Inflation often becomes responsible for an increase in the value of almost all the commodities including the construction commodities. The increase in the value of construction commodities in turn leads to an increase in the value of properties. Thus, it is a good time for real estate investors who're looking to sell their properties. Inflation is often referred to as the best time for investors to close transactions. In a nutshell, inflation has a direct impact on the increase in the value of properties.
The demand and supply concept is often influenced by human behaviour. Some localities have increased demand simply because its livability conditions are very high. Especially when one is talking about the residential properties, some localities have high demand because they are liked by people in general. It is for this reason that some of the localities manage to have high property values despite poor infrastructure. Higher the demand for the property gets, higher the value of the property.
These were some of the primary reasons behind the increase in the value of properties. However, it's worth noting that there are far many factors influencing the value of properties which may not be very evident or in other words, direct. There are plenty of indirect reasons for the value of properties to increase. A closer and deeper look into the overall economic development of the locality alone can provide answers as to why there is an increase in the value of certain properties.
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