Impact of A House’s Location On its Property Value
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A house is many things, but most importantly, it is an investment that you are proud of. While the home itself is worth more than money, one cannot undermine the importance of the property valuation. Once you purchase a property, considering all other factors and conditions are taken care of, the property value is likely to rise.
One of the most important factors here is the location or area where your home is located and how it affects the property value.
What Makes the Location Important for Your Property?
Let’s look at it this way – you have a wonderful house to live in, but once you step out, the grocery store, the shopping centre, the highway and main roads, your child’s educational institute, an entertainment centre such as a movie multiplex or a clubhouse are at least an hour away from where you live. This sure does not seem to be convenient for anyone, be it the owner or a tenant of the house!
Now imagine another scenario – this time, with all the amenities conveniently located closer to your property. While this means saving a lot of time and hassle in locating and reaching these essential points, it also means that your property is more desirable for a potential buyer in the future.
The availability and the ease of access to these facilities makes the location one of the most important variables for your property. Needless to say, your property value is bound to appreciate, even at a time when the markets are slow.
In What Ways Does the Location Affect the Property Value?
Most of the properties in metropolitan cities have easy access to all the basic amenities like schools and grocery stores as well as entertainment centres such as malls and multiplexes.
Here are four things to look out for when considering how the location of your home can influence the property valuation:
Feasibility of transport:One point you would consider while purchasing a property would be to check how convenient the transport facilities and the infrastructure are. While this applies to the distance between the residence and the nearest public transport point, it also implies how easily one can access the nearest main road, avoid longer routes while commuting and not experience poor road conditions at the same time.
Essential amenities:While it is understood that one’s workplace cannot always be located in the vicinity, the same does not apply to a school. Homebuyers with young children tend to seek properties with a few good schools in the same or nearby neighbourhood. Likewise, it is unrealistic to expect that one would commute for an hour or two for daily groceries.
Luxury amenities:Entertainment is an important part of everyone’s social life, and the proximity of fine dining cafés, movie halls or clubhouses to a residential property can easily hike the property value. Though these facilities are not considered basic or essential, they are what make an area “a prime location”.
Greenery and open spaces:One more facility that is in demand in recent times are verdant open spaces near the home. Of late, to tackle the issue of pandemic or lockdown fatigue, homebuyers are increasingly looking towards houses with biophilic designs that integrate natural space and light within the home. Since accessing such spaces is difficult in such cities, some homes try to incorporate the natural environment in their designs.
From the investment point of view, it is always a good idea to purchase a property in a location that is eyed by a large number of potential buyers. Such locations not only help in the appreciation of the property value but also make the selling process easier at the right time.