Property investment can give you high returns in a few years. The price of land and housing keeps rising. Your property can yield high returns when well-maintained and located in a strategic location. While market demand varies from one city to another, and from time to time, a home kept in its best condition will always have a higher value in the market.
So, how do you ensure you can fetch more from your home when reselling it? Or, how can you convince the bank to give you a higher loan-to-value (LTV) ratio when you are refinancing your home? Keeping your house top-notch and embracing new technologies can make it even more appealing.
Here are five crucial factors that can affect your property value.
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Property Age
Did you buy the home built in the colonial period? That is long! The average lifespan of a typical home in the U.S. is about 60 years. So, anything beyond this age is already a huge selling point. The good news is that even if your home is quite old, you can still renovate and modernize it to make it more appealing to buyers. If you want professional help in managing your property to increase its value, check out the Nashville property manager.
Another thing about old homes is that they are located in strategic and prime areas. The city center or business districts have most of the old buildings. Such places attract many people, and older homes in such areas are valuable.
But their design does not match modern trends and needs. They may lack various features that people look for in a home today. For example, old houses may not have a garage or enough parking space. They may also lack a backyard, a swimming pool, or a beautiful garden. That means they can only acquire value from their strategic location.
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Modern Equipment
The kitchen, bathroom, and other places in the home where people spend most of their time should have the latest equipment. That is what makes a home more valuable than others. For example, a house with a Jacuzzi or sauna is more valuable than one without such features.
The latest appliances and built-in features in the kitchen and bathroom make a home more valuable. If your house has an old kitchen, you can do a total makeover and install new cabinets, countertops, and flooring. Also, ensure you have enough storage space. The same applies to the bathroom, garage, and other places in the house.
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Energy-Efficiency
Electricity bills are not going down anytime soon. They will continue to rise as we consume more energy every day. That is why people are now looking for homes with energy-saving features. You can increase the value of your home by ensuring it is energy-efficient. People can pay more because the long-term costs are lower.
Some of the things you can do to make your home energy-efficient include;
- a) Replacing the old windows with energy-efficient ones
- b) Adding solar panels
- c) Installing a rainwater harvesting system
- d) Using LED lighting
- e) Insulating your home against heat and cold
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Usable Space
People want to host their families, hold events, and have enough space for their kids to play. Pets are also becoming a part of families. That is why people look for homes with a backyard or garden to make an outdoor kitchen, install a swimming pool, or build a playground for their kids. Homes with such features will be more valuable.
You may also want to consider your home's design. How big is the master bedroom? What about the living area? Is the bathroom spacious enough? Are there some things you can change to make the house bigger? Homes with the old style of a separate dining room may not be that attractive to potential buyers. So, you can open up the space and create a more open floor plan.
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Property Location
Your neighborhood, city, and state can affect your home's value. People are looking for a place with good schools, a safe environment, and near work or other places they frequent. That is why homes in such locations are more valuable. Properties near business centers attract more investors looking for rental income.
It is not possible to move your old house to a new place. You can only sell it and buy a new one in a strategic position to increase its value. Also, choose a good location if you have not yet built a home. It will be one of the best investments you make. Later on, you will make more money when you sell it.
Summing Up
Property investments can be lucrative as the value of your home increases over time. But you must ensure you invest in a more valuable home by looking at the factors that affect property value. The location, design, size, and features of your home are some things to consider. You may not change everything to make your property more valuable. But you can start with a few things to increase its worth in the long run.
