When it comes to investing in the real estate market, timing is everything. If you are looking to make money off of this potentially lucrative investment option, you need to pick properties that boast a high probability of increasing in value. Here are three ways to help to ascertain if a property’s value will increase over time.
Noise Reduction
Nobody wants to purchase a home in an area with a substantial amount of residual noise. This is why properties near highways and major airports are a harder sell than their quieter neighborhood counterparts. Reducing the noise in your area can increase the value of your home by a significant amount. While new construction homes are often accompanied by a lot of noise and clutter as the development comes to completion, the property values are sure to go up once the construction is complete. Do not ever discount the impact of noise pollution on the value of a property.
Planned Developments
There is a reason why investing in master-planned communities is a good investment of your real estate dollar. It’s advised that developments on the land can increase its value because homebuyers are attracted to properties that provide comfort and convenience amenities such as a project with retail centers and restaurants. The best way to turn a large profit on a new property is to buy it at the beginning of the development phase when the prices are lower. Once the development comes to completion, the value will be at its highest and you can sell for a profit.
An Increase in Home Sales in the Area
A greater than anticipated bump in home sales in the vicinity of your home may also contribute to the value going up. A higher than average increase may be the result of a variety of influencing factors. Some of these contributing factors include a hot housing market overall, new developments that attract buyers to the area, a booming economy, and new school construction. If overall home sales are increasing at a high rate, you can expect that the other properties in the area will also increase in value because the region is considered to be attractive to buyers.
Although there are never any guarantees in real estate, the right choices and timing can make or break the investment. By choosing your properties wisely, you put yourself in the best possible position to succeed.
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