Many people tend to think that a home’s value is determined by is physical characteristics, however in reality a home’s physical structure depreciates over time. The land that the home sits on appreciates in value.
A land value usually increases due to the limited supply. As more people are born so does the demand for land increases. After all no one is making more earth.
Location, location, location
Once we understand that the land which your home rests on is where the real value is. The next thing that impacts the value is location. Is it close to schools, shopping centres or religious centres. This will affect its value.
Safety
Safety is a big one that affects a home’s value, people are looking for homes that are safe for their kids and to protect their household items and vehicles. This can be places with 24-hour security and is located inside of a complex.
Future Developments
New malls and industrial zones can bring a huge increase in home value, the land value increases due to the new developments bringing new people to the area.
Conclusion
The value of your home is always dynamic, it’s good to keep this in mind if you are looking for a new home to buy or if you already are a homeowner.
