When you buy property, whether it is a home or office space, you invest a lot of time and money for it. If its value sinks, you are likely to remain in debt for a long time. If its value rises, you have options to resell or keep the property as a valuable asset.
An expert on property management in North Shore, Prestige Real Estate International LTD cites that one of the important factors that determine value is the neighbourhood. Here’s how the neighbourhood can have a positive or adverse impact on the value of the properties you own.
One of the most important factors that have an effect on the value of a property is its job accessibility. If there are plenty of opportunities in that neighbourhood, prices of properties will remain relatively high.
People look for convenient ways to get to their offices, if the home or office you own is accessible, there will be a lot of interest in it, driving up its value. The neighbourhood does not even have to be fancy, as long as it is a short distance away from a person’s job that piece of property will be valuable.
The next factor that has a strong influence on the value of a property is the desirable amenities of a neighbourhood. The term amenity regarding property is about the desirable assets, tangible or intangible, of the neighbourhood. Some of these include:
- Quality schools, elementary to college if possible
- Many retailers
- Unique architecture
- Accessibility and prevalence of parks
- Low rate of crime
The Drive-Through Test
This is a subjective parameter but can gauge the value of your property. The drive-through test involves ‘driving through’ a neighbourhood; to see the lawns, yards, pride of people living there, friendliness and the potential for growth of the area. A pattern of neglected houses may signal that value of properties may go down.
The value of property hinges on several factors, one of them is the neighbourhood. The latter provides you with a good parameter as to how the price of your home or office will go down or up.