Whether we are choosing property to live in or renew and sell, an investment needs to grow. Since a home is a major investment, where it is located plays a big role if you want property that will grow. Here are a few tips to help you make the right selection:
• Chose the Right Location
When it comes to holding a home retaining its value under pressure of downward prices, location matters the most. If a property is rare, scarce, or there's a low supply of it, the cost will be maintained and can even increase.
You can always build a new one, but you can not replace the land underneath. Pick a spot everyone wants. The demand will be stronger, and the value more than similar homes in other locations where demand is low.
• Chose property that is unique
Even in a development where every house has been built by the same contractor and has the same floor plan, the landscaping is usually different. Uniqueness counts! Property that is large land size, has gorgeous views, is on the waterfront will have higher value than next-door generic housing.
• Chose the right infrastructure
The property surrounding a development such as: streetscape, facilities, transport, shops and schools is called the “infrastructure.” It can affect the home's value.
A property close to public transportation, good schools, good medical care, and good shopping places will always be worth more than those very far away. They retain a higher value than those that are in remote areas.
If you select a suburb close to a planned infrastructure that is not built yet such as: a planned new hospital, shopping mall, or highway, will increase in value around the time these things are announced and more when completed.
• Renovate well
If you can renewate to improve a home's energy uses, a buyer pays attention. The Federal Government encourages us all to do it. These are the types of renovations that increase the value of your home the most. Lavish renovations may decrease the value if a buyer is not interested. A swimming pool might be a luxury to you, and a liability to a buyer. They may feel it has to be removed and at a great cost.
• Choose the right cycle
Right now, property experts agree the top end of the market is suffering more than the lower end, where property is concerned. Low interest rates and first home buyer grants help the low end to suffer less.
Each property responds differently to market forces. If you already own your home, there's nothing much you do if the market drops your property value. Just remember the market always operates in cycles.
Wait until the cycle swings to a more stable level. If you buy a new home and sell the old one in the same market conditions you should have the same bottom line result, whether the market is up or down.