Purchasing property is an essential part of any investment strategy and its location plays an integral part in determining its value. There are numerous elements to consider, each with its own weight and significance. In this post, we’re looking at what makes a location valuable and why.
Climate And Property Value
Adaptability To Local Weather Conditions
Places with a moderate climate generally have an edge over extreme weather zones. This is because homes in these locations are less likely to require specialised constructions to endure harsh weather, thus making them more attractive to a wider audience.
This, however, doesn’t imply that homes in harsher climates are of less value. On the contrary, their value increases if they have efficient insulation, robust heating and cooling systems and other weather-resistant features.
Proximity To Water Bodies
Properties near water bodies can command higher prices, owing to the beauty and recreational opportunities they offer. Nonetheless, this charm comes with its unique set of considerations.
Properties close to water must employ superior waterproofing solutions to prevent potential water damage. This includes a sound foundation, the right insulation and weather-resistant materials. All these play an important part in the long-term value of the property.
Amenities And Infrastructure
Transport And Connectivity
The importance of connectivity cannot be overstated. Locations that offer easy access to public transport, main roads and central business districts often see a rise in their property values.
Essential Amenities
Nearby amenities are a substantial attraction for potential buyers. Immediate access to hospitals, schools and shopping centres can make a property more desirable, hence increasing its value.
Social Factors
Quality Of The Neighbourhood
Well-maintained neighbouring properties, low crime rates and cleanliness are factors that subtly but surely impact the value of a property.
Demographics And Lifestyle
The area’s population profile and lifestyle choices can also play a role in a property’s value. A location favoured by young professionals may have a different appeal than one popular among families with young children.
Economic Factors
Local Economy
A strong local economy with thriving businesses and ample job opportunities is likely to draw more people, create more demand for housing and in turn, escalate property values.
Market Trends
Keeping an eye on property market trends is vital. Factors like buyer and seller demand and interest rates can shift the value of a property. Knowledge of these trends and the ability to interpret them can assist in making more informed decisions.
Local Environment And Sustainability
A location’s natural environment, including local flora and fauna, air quality and noise levels, can also play a role in determining property value. A property in a quiet neighbourhood with plenty of trees and greenery can be more appealing and thus command a higher price than one in a crowded, noisy area with little access to nature.
Let’s Navigate The Property Market Together
At Harcourts Kingsberry, we’ve dedicated ourselves to helping you find the right investment property. Our experienced team is ready to assist you in understanding the market dynamics and making the right decisions for investment portfolio. Reach out to our team today.