The goal of every form of investment, including real estate, is to yield a high return on investment (ROI). Meanwhile, the real estate industry has proven to be the best form of investment. This is how 90% of billionaires became wealthy through real estate.

Whenever you want to buy a property, you need to make sure you are investing in an asset that will increase in value and that gets you the best deal. So what are the factors that affect property value?

In this article, I will be sharing with you some key factors that affect the value of properties.

1. Location: The location of your property is one of the most important factors that affect real estate values. Is it close to the city centre? Is it a sought-after tourist destination? Is it close to public transportation, shops, schools, and restaurants? Essentially, as a smart real estate investor who has more than enough capital and wants the highest possible return on investment, you should always look out for properties in places like this.

2. Supply and Demand: The push and pull of supply and demand have a major influence on the value of a property. If there is a high demand but a fixed supply, the price of properties will rise as more people attempt to buy. When supply exceeds demand, prices will then start going down.

3. Home Size and Usable Space: The market value of a real estate property is usually mentioned in terms of price per square foot—the total sales price divided by the property’s square foot.

Besides square feet, a property’s value is determined by the amount of usable space, such as garages, swimming pools, play areas, etc. Spaces such as bathrooms and bedrooms, whose sizes can significantly increase the home's value. It is obvious that the price of a 4-bedroom semi-detached house cannot be the same as a 2-bedroom terrace duplex.

4. Property Type, Style, and Age: Different types of homes, such as semi-detached, terraced, detached, flats, etc., command different prices. Different architectural styles and the age of the property will also affect its value.

5. Interest Rates: Interest rates in a country can determine the value of properties to an extent. They determine the level of spending and investor confidence in the area. The lower the interest rate, the lower the mortgage payments and interest payables to banks and lenders.

Conclusion: It is important to know what a property is worth before buying or selling. As stated at the beginning, knowing the accurate value of a property is important if you wish to get a good deal. For this to happen, one must understand the factors that determine the value of the properties.

In this newsletter, I have mentioned a few factors that affect property value, but there are other factors out there that need to be studied to fully grasp the technique to estimate property value. So to save you time, it is best to consult a real estate agency like New Wine Realty for professional advice.

Do you want to reinforce your real estate investment knowledge with valuable insight? Check out our social media platforms to stay glued to exclusive real estate investment tips as you progress.

For Enquiries: Call SAMUEL: +2348150350306, +2348189861993
©2023 Samuel Ishau, Lead Consultant, New Wine Realty

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Real estate investing is the purchase of a property or piece of land with the intention of making a profit from it. This could include buying and selling, renting out, developing, or even building up your own portfolio of properties. It’s an incredibly popular form of investing and has been around for centuries.

The potential rewards of real estate investing can be great and there are many reasons why you should consider getting involved in it. Here are seven reasons why you should start investing in real estate:

1. High Returns – Investing in real estate can offer high returns due to its potential for long-term appreciation and rental income. As the value of a property increases over time, an investor’s return on investment can grow significantly.

2. Diversification – Real estate can provide valuable diversification to an investor’s portfolio since it is less affected by stock market fluctuations than other investments. This means that if one type of investment performs poorly, there is still the potential for other investments to perform well.

3. Tax Benefits – There are numerous tax benefits associated with real estate investing such as deductions for mortgage interest payments and depreciation. These tax benefits can help to reduce an investor’s overall tax burden and increase their profits.

4. Leverage – Real estate investors use leverage to increase their returns on investment by borrowing funds to finance their purchase of a property or piece of land. This leveraged approach allows them to invest more than they could normally afford while also increasing the potential return on their investments.

5. Long-Term Investment – Real estate provides a secure long-term investment option since the value of a property tends to appreciate over time, meaning that investors don’t have to worry about short-term fluctuations or economic ups and downs affecting their holdings too drastically.

6. Passive Income – Rental income from tenants can provide investors with regular passive income which can be used to pay off mortgages or as supplemental income for retirement plans and other investments.

7. Flexibility – Investing in real estate gives investors flexibility when it comes to how they structure their investments, allowing them to decide how much risk they want to take on and what type of properties they want to invest in, depending on their individual needs and goals.

As you can see, there are numerous benefits associated with investing in real estate which make it an attractive option for those looking for long-term financial stability and growth potential! Brickvest Properties and Homes are here to help you achieve of your greatest dreams that of investing in real estate whether for private use or for investment purpose. Get in touch with us now for a free advisory session.

Kingsley O. Idahosa
Brickvest Properties And Homes
www.brickvestproperties.com.ng