Want to buy a house or already have a house at this time? You certainly have separate considerations when buying your current home. As those who are fond of buying a home for investment purposes, chances are your decision to choose a house is determined by a number of factors that you think can certainly make the price soar in the future.
Such thinking is very common for home buyers. It’s just that, most will forget one slogan among the real estate industry: Location! Yes, location is very important and is the main determinant of whether a house is worthy of investment. This makes sense considering the physical condition of the building will continue to decline in quality over time. It’s only land, where the building rests and sticks, which keeps increasing in value.
Therefore, it is very important to realize that failure to value a house as an investment vehicle will be a barrier to the ability and opportunity of the property to maximize your wealth in the future. Then, what are the considerations and tips that home buyers and prospective home buyers need to understand in the future? The following are the considerations and tips needed.
1. Land as an asset that continues to rise in price
As with the prices of other products and services, house prices are influenced by supply and demand. Not only that, to reap profits, developers polish the house in such a way that the price can rise and soar. In fact, factors other than land have a far less effect if you really think about it. Therefore, it is very important to realize and understand how the location and future prospects of land values affect property prices. Investors who are careful enough will not get caught up in understanding this. The reason why it is the land that will continue to soar is actually quite simple. Land exists in limited quantities and cannot be produced anymore. Demand for land continues to increase along with population growth. And, because the supply is limited, the price must increase with time.
2. Location in the village will affect the value of the land
The type of location of your home also determines the price at a later date. Houses that are near major roads tend to have higher prices later than those that enter the aisles. Why is that? This is because access is easier and tends to be safer for children. Also more is needed. Increased land prices should be considered in choosing the type of village and residence. Most of those from middle to upper class tend to choose houses that are fixed and tend to be difficult to build or develop again. Whether we realize it or not, it also makes the price different from villages that are filled by the lower middle class.
3. The increase in land prices is also influenced by the age of the neighbors
This factor is very rare, if it can not be said never, touched and discussed by potential home buyers when choosing a location. New home buyers with lots of young children often avoid locations where most of the residents are elderly. The reason is simple; that is because they are not suitable playmates for your child. In addition, most homeowners.
4. Development around the house can affect property values
Homeowners should realize that it is not enough to know what services are available near the house. Equally important, and perhaps this is far more important and foremost, future planning at the site, both by private needs and government plans in the area. It is important to realize that future government plans regarding public facilities such as hospitals, schools, traffic engineering and even toll roads will affect current and future land prices. Therefore, it would be better if you understand in what direction and how much regional development planning in the city or district where you want to buy a house.
5. Smaller houses can be more profitable
Don’t get stuck. You need to know that the size of the house and the type of large house does not necessarily promise a very large return on investment. And, it’s not because of a matter of luck too, a house can rise several times the price. One thing you need to consider here is the essence of price increases is the ratio between supply and demand that is the main factor in driving land prices. Do not get stuck buying the biggest sized house in your village. It would be better if you buy two houses in one village or neighborhood. The reason is simple. The most important thing from the house is the land. If both small and large houses in the neighborhood have the same area, why buy a large one? You will only end up buying construction materials, which quality decreases. In the end, the price of your house is not much – could be the same – with your neighbor whose house is smaller.