One of the best investments that everyone with good
resources opts to invest in is real estate such as apartments, transient
houses, condominium units, and such. It is because it is very noticeable for
this kind of investment to appreciate over time which means their value
increases as time goes by.
Living here in the Philippines gives us a lot of opportunities to venture into this kind of investment because it is something we are proud of – this is really such a very beautiful country to live in. From a lot of very comfortable and natural hundreds and thousands of islands that we have to many distinguished tourist destinations all over its corners, we can always find a place to consider home. Also, a lot of regions and areas in the country have grown a lot that seems to invite a lot of good investors into putting up small to medium enterprises to many remote areas that contribute to the country’s constant development. It also became such a very great help for everyone because we can now easily have access not just to the thing that we need but also things we are sometimes craving for.
But if you are someone who is thinking about either getting a home or investing in a real estate property, you also need to know what factors are there that affect property appreciations and depreciations are. The following are things that you may observe to affect your property.
Factors that Affect the Value of your Condo
Renovations and Beautifications
It is very easy for a property to appreciate not just by waiting for its time to do so. When you make any improvement in any property you have, its value relatively increases. When you add a bathroom or a bathtub, extended your lounge, add ventilation, modify landscapes and many other ideas you have in improving the habitability of the property, surely your property will appreciate. People, most especially the workaholic types always look for a cozy place to stay, one that will give them rest by just staying in the night and not thinking about a broken faucet due to substandard materials. Always make sure that every in every renovation and fixture that you will be doing in your property, you will always opt to use standard materials because it won’t just increase its value, it will also lessen the situations that will give you a headache when it comes to maintaining your property.
The change in the surroundings and the environment can also affect the value of the property. For example, there will be a mall or hospital that is planned to be put up around the area of your property, the demand for its occupancy will surely rise thus boosting the competition that can affect a price hike for like renting and owning a property in your area.
One of the most important factors that everyone is always taking into consideration when buying or investing in properties is its accessibility to school, church, hospital, market, and many commercial areas. The nearer you are to the center of commerce, the higher the value of your property. Sometimes, it can be more important than the physical attribute of the property. Try to walk around a place like an industrial park and you can see a lot of apartments for rent, bedrooms for spacers, and it will be very hard for you to find a vacant one even if you can see that not all of these houses or rooms are very aesthetic. This is because, for working people, it will always be better to live in a place near your job than be in a comfortable place but travel a lot more after your tiring day. This is why it is also a great idea to invest in places even if it is not yet fully developed knowing that there is a plan of developing them into a commercial area or village.
Inflation and Natural Disasters
Inflation can lead to an appreciation of assets. As this price of things increases with inflation, so too does real estate. Generally speaking, when inflation increases then housing and other real estate asset prices also rise respectively. On the other hand, when an owner is not very good at maintaining his/her place, the value of the building depreciates. The only thing that surely appreciates is a piece of land. To help avoid property depreciation, you can rent out the condo you own to pay off the cost of maintenance or renovate your house for future selling.
Moreover, properties such as condominiums can also depreciate or decrease in value. There are also inevitable factors that can cause a property to depreciate.
Depreciation also happens when an area is discovered to be flood-prone. Most of the time these are areas that are located on the downhill that some may call ‘the catch baskets’. In the case of condominiums, their value depreciates if the homeowners’ association or management fails to maintain its facilities and the quality of residents.
Availing insurance is also one thing you can think through. These are just some of the factors that you can observe to be the reason how your property can increase its value instead of just waiting over time.
One thing also that many of us don’t know is that as the property land alone appreciates, the building doesn’t. For example, if you are owning a Condominium in Metro Manila where commercial properties are very near, the land in this area for example in Taguig always appreciates it very well. But the building property itself doesn’t. This applies to all condominiums such as in Baguio, Cebu, and anywhere you might wanna have yours. They decrease in value over time especially when not maintained properly. Assessors will help us know and find the new value of our buildings over time. This is why it is very important to owners most especially those who are making it their business to always do necessary maintenance and renovations if needed so that the value of the building or the condominium can maintain a high value.
If you are thinking of moving into a new condominium, check out Vista Residences!
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit-oriented locations, and developed business districts.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.