Most of us wish to invest and we all know the fact that real estate investment is the best investment among other investments. Before investing a huge amount in properties, we should highlight a few factors that can give us a better price appreciation. You should invest in properties with appreciation potential so that you can gather better harvest over a period of time.
1.Know About Price Appreciation
Increase in the value of a real estate property over a period of time is known as price appreciation and you should invest in a property which has appreciation potential. The main idea of investing in real estate is to get handsome returns in future. There should be a positive return on the investment. A number of factors support the appreciation potential of your property.
Real estate appreciation potential refers to how the value of a property increases with time. At times it can be a forced appreciation which means that the value of a property increases if repairs or renovations are carried out. One can cherish a few benefits with the appreciation of his property. You get a good price if you sell the property. As long as the demand is high, you will definitely get a good price. It can also be a good source of income if rented out.
Investment in real estate is the perfect choice for a safe and secure future. But as all investments demand some or the other features, real estate investment also has its own demands. The property you select should comply with all the factors that serve as appreciation potential. At times we have heard people saying that the prices of their properties did not rise. The reason is that they have not paid attention to the factors responsible for appreciation potential.
2.Factors that Affect Price Appreciation
We need to consider a few factors that have the appreciation potential or that can affect the price appreciation of a property. The value of a property and the amount by which it will appreciate over a period of time will depend on these factors.
2.1. Location of a Property
The most important factor for price appreciation of a property is its location. Properties that are near cities or markets and hold better amenities and infrastructure have more appreciation potential. People prefer to live in an area that is accessible, close to the workplaces, and where properties are likely to fetch higher prices over a period of time. Investing in properties in such areas will trigger real estate appreciation and such properties have more appreciation potential.
Moreover, the position of a property in a building also helps in appreciation of the property. The prices of a house or a flat facing the sea, parks, swimming pools or the corner flats which are open on two sides etc. are slightly higher but they hold a good appreciation potential.
2.2. Interest Rates of Home Loans
Interest rates of home loans directly affect the price appreciation of a real estate property. When the rate of interest on home loans is high, the demand for houses will reduce as only a few will be able to afford the expensive loans. On the other hand if the rate of interest of home loans is low, then there will be a higher demand for residential properties as more buyers will be able to take the loans, indirectly increasing the appreciation potential of a property.
2.3. Connectivity and Infrastructure Matters
Properties with good connectivity to different areas of the city will have higher appreciation potential. It should be near a railway station or an airport but it should not be too close as the noise will become a factor to reduce the prices. Means of transport should be easily available. Social and retail infrastructure also matters in appreciation of a property. If an infrastructure project is expected to come up in the vicinity of your property, the prices are sure to appreciate. Educational institutions and hospitals should be in the vicinity.
2.4. Demand and Supply
This is another factor that affects the appreciation potential of a property. If the demand of properties is high in an area, then the prices also rise if the supply does not meet the demand. Home buyers will be ready to pay more for homes in areas that are attractive & desirable.
2.5. Growth of Local Population
At times due an infrastructural development or due to some industrial development in the vicinity of a property, there will be an increase in the population of an area, therefore giving rise to higher prices of a property. An increase in demand for houses will directly support the appreciation potential of a property.
3.Invest in Properties with Appreciation Potential
One should always check the appreciation potential of a property. It is a difficult task to check all the factors that help in price appreciation. Hence one can invest in a property from a reputed developer so that you get the assurance of price appreciation in future. Good Time Builders, a reputed name in the arena of real estate, creates ventures in areas with high appreciation potential. They take into consideration all the factors that support price appreciation and the buyers need not worry about it. It is your hard-earned money and just cannot be invested anywhere.
Forced appreciation occurs when repairs and renovations are carried on the property. Properties with price appreciation potential become a great source of financial security in the future. It becomes a major asset and also a legacy for the next generation. Moreover the same property will fetch higher returns if it has to be sold in future. Good Time Builders with their expertise in the field of real estate can read the growth of property’s market and then decide on taking up a venture. They always go for ventures which have the appreciation potential. So invest in the ventures of Good Time Builders and relax because the prices are sure to witness appreciation in future.
Written by Nikhil Gattu
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Written by Nikhil Gattu
