Want to start investing in real estate? A property valuation could be just the tool to get you started. You might have this valuation conducted right before you purchase your first home or when re-mortgaging your current home to help with new investments. Regardless of when or why you need a valuation, certain factors can impact the final value of your house, which could ultimately impact your financial and investment goals.
Getting a house valuation in Sydney is not a tough task so long as you have the right expert by your side providing advice. A good property valuer could be this expert. They’ll fully understand what factors are currently influencing the property values in your area and how they are impacting your property or future property specifically. Such factors include:
Amount of land available in the area –
A connection has been made between land scarcity, development, and population density in an area to housing values. Essentially if an area seems undeveloped or there is an abundance of land available then values in the area will be lower than areas that have more residential or commercial development.
Local supply and demand –
As with other types of products, supply and demand can greatly impact the price. It is a basic economic principle, if a product is scarce, or there is not enough to meet demand, then it results in the prices of that product to increase. Real estate is no different. In fact, supply and demand is a key influence on property value as housing is something everyone requires.
For real estate, supply is normally fixed, at least for a particular time whereas demand can change drastically over time. If there are more people looking to buy a house in a certain area that does not have enough housing at any given time, then expect property values to skyrocket.
Location of the property –
We all know location is a major deciding factor for any homebuyer. For most, it is the first thing that is decided on before the search for investments or a home even begins. There are many variables that can sway the prices in a city or suburb. This could be such things as the availability of work, the level of commercial development, reputation or how easy it is to commute into the CBD.
Amenities –
Prospective buyers are always interested in what is available in the area in terms of local amenities. After all, a location needs to be able to suit your lifestyle and or at least your ideal lifestyle. Amenities or facilities that can sway interest in an area include transport, gyms, parks, schools, cafés, entertainment, and shopping centres. The types of amenities that are available in an area can dictate the type of residents or buyers attracted, which can also further influence the current market value of any property.
Size of the property –
Size plays a huge role in the valuation process. It is what a valuer uses to calculate a house’s value and used to find comparable properties in the area for market research. Of course, the size of the building will also influence the interest of prospective buyers and therefore its marketability and value.
Type of property –
There are a few different categories of properties in Sydney and many, many sub-categories. For commercial properties, there are retail stores, offices, warehouses and more. Even Residential properties can come in a variety of forms such as townhouses, duplexes, and single-storey houses.
Each type of property will be of varying sizes, designs, ages, and conditions. This all will have an impact on each property’s total value.
Customisation –
In general, modernising a residence will result in an increase in its value. There are many features and designs that are either very popular or considered the standard for today’s homebuyers. Custom designs made to modernise a house and increase functionality will only produce positive results in terms of selling, boosting its appeal and property value.
These customisations may include installing a modular kitchen, upgrading a bathroom or storage solutions.
To find out what is influencing the value of your home or investment, order a valuation from a professional valuer. Their report will reveal all factors impacting the value of your property and report its true market value. Prepare yourself for purchase, sale, or plan for your financial future with the help of a property valuation.