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- March 14, 2024
- Building, Education, Land Banking, Real-estate
- 01 Min
THINGS THAT DECREASE THE VALUE OF YOUR PROPERTY
- DAMAGED OR WORN-OUT EXTERIOR
As much as you may have been told to never judge a book by its cover, it is human nature to do exactly that. First impressions are very important, and if your home needs a lot of work on the outside, people may not give it a second chance. Cracked walls, flaking paint, and broken gutters are all just signs of work that will need doing once the new owners move in.
- LOCATION
The location of your property is one of the most important factors that affect property. Is it close to any nearby school, hotel, etc.
- UPGRADES AND UPDATES
Upgrades, UPDATES, and home renovations can significantly increase the value of your property, especially older properties that might have outdated features. Kitchen and bathroom renovations are some of the improvements that could have the biggest effect on the home’s value.
- INTEREST RATES
The level of interest rates is one of the major factors that affect property value. If the Reserve Bank decides to increase the interest on loans, lenders will follow suit. This will mean that borrowers will have to pay a higher monthly mortgage.
- ECONOMIC FACTORS
The economic conditions of an area will have an effect on people’s ability to sell or buy an investment property. When the economy is booming, there will be more jobs and people will earn more money.
As the buying power of people increases, they are more likely to invest in a new home or second home. The increase in demand will eventually result in higher property prices.
On the other hand, if unemployment increases and wages drop, less people will be able to afford a home. Subsequently, the prices of property will also drop. It is therefore very important to keep up with the prevailing conditions of an area before setting the price for a property.
