When entering the property market for the first time, or when looking to grow your portfolio, it is important to consider what makes a great purchase.
The best outcome is to buy a property that then increases in value before you look to sell it.
We’ve covered below some of the key factors to consider that can increase the value of a property.
What are some factors that can increase a property’s value?
Ensuring that the property is well located is an important consideration for home owners. The “where” of a property is something that cannot be changed. Areas that are most valuable are those that are conducive to certain lifestyles. I.e. being able to walk to work if you live in the city. A property is likely to increase in value if the demand for houses in that particular location increases. This happens when there is reason to want to live or work in that area more than ever.
We have seen a real shift in the type of property that people are wanting to attain. People no longer want to have a large home on a big section but prefer to have a modern home that requires little maintenance. The world is open for travel and after having endured a global pandemic people now want to spend their leisure time travelling and partaking in hobbies rather than tending to household upkeep.
Modern homes also increase in value because they stand the test of time.
Older homes require ongoing maintenance as maintenance escalates in terms of significance. This can detract from the house value.
Depending on what the market is doing and what is going on in the location of the property, the rental return can fluctuate broadly.
For example in Christchurch, the new covered stadium $683m will see properties surrounding have an exponential rental return value.
If a property’s rental return is priced to be more, then the value of it will increase. This is because the owner can generate a higher return for it so will be able to service paying more for it initially. Effectively it will earn them more.
House pricing is difficult to predict as it is not simply based on supply and demand. House supply is relatively stable. But the demand for housing can rise and fall rapidly due to inflation.
People are much more likely to want to buy a home, and therefore commit more funds, in a market where interest rates are low.
When the prospect of a smaller mortgage is offered; house prices are at their premium.
What the location of the property has to offer can dramatically influence the price of the homes there. If investment is undertaken in upgrades to the city then properties grow in value. Put simply, people want to live next to premium facilities and the best infrastructure. They will pay a premium for it.
One way you can increase the appeal of your property and in turn it’s value is in the additional fittings and appliances that it has. Utilising the best brands not only helps to ensure that they stand the test of time, but can prove an investment that pays off.
You can also up-spec your house to offer more than what is typically included in a home. For example wired in speaker sound system or upgrading light fixtures.
Why Williams Corporation properties are great investments set to grow in value:
When we build our Williams Corporation homes we build on land that is close to the best amenities that the city has to offer. Whether this means the homes are centrally located near the CBD or close to the best offerings of the city; we do not compromise on location.
Our homes comes with the best chattels fitted from they’re completed. This ensures that the home is enjoyable to live in with modern fixtures and appliances.
We do not compromise on this highest quality materials in our builds. This provides piece of mind that it will stand the test of time. Our homes do not look “tired” but rather are polished for generations to come.
If you would like to know more about the properties we have available in New Zealand and Australia, please contact one of our team here.