Generally, property tends to appreciate with time. The net cost and appreciation of property is dependent upon various factors. In most cases, the property’s net value at a given time is normally determined by four critical factors.
Size of the Property
The value of a property is directly influenced by its size and other internal parameters. Generally, houses’ sizes are measured in terms of the square area, the number of rooms, and the presence of certain amenities such as garages and perimeter walls. Houses that have a bigger square area attract a larger pricetag due to the initial costs incurred in the construction process. The house’s internal features also directly impact its cost. Houses that have additions, such as finished basements, generally cost more as compared to those which do not. The quality of such furnishings is also a factor that influences the market price of the property.
Location of the Property
Location is one of the crucial factors that affect the cost of properties in the market. Properties located proximal to certain crucial utilities and developments such as roads and schools generally tend to cost more due to the convenience enjoyed. The location of such property in relation to the class of residents also affects its prices. The social, cultural, and demographic profile of residents living in the neighborhood also impacts the net value of the properties within the entire region.
Prospects of Future Developments
A properties’ net worth is influenced by the provisions for future developments. Properties located in an area with prospects for future development tend to cost more as compared to those located in a dormant area. Prospects of such developments as instituted by the government or municipal area generally make properties within the area have an escalated cost.
The economics of the area and the country in general where the property is located has a direct influence on how much it costs. When the economy is booming with a stable employment rate and good Gross Domestic Product, the average cost of real estate properties tends to stabilize to within competitive and affordable rates. The economic influence is normally a factor of numerous other elements that affect the houses costing such as the mortgage interest rates payable.