image What Drives Real Estate Prices? - Mia Liana

Friday, 10 June 2016

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What Drives Real Estate Prices?

If you have ever looked into a specific property or a potential home, then one of the things you have to consider is the price on that given home as well. The fact of the matter is not every home is going to be worth the same exact amount of money as every other home with the same features, construction, and land. In fact, when you consider a specific property, you also know if you took the house and property and moved it to an entirely neighborhood, the price could drastically change just due to it being in a new place. If you are trying to figure out what drives real estate prices, then these are the keys to pay attention to.

Surrounding Areas

Look on a map and you can instantly see a few things that will influence the price of a neighborhood or an area in general. Are there any special features or amenities in that given region that you can’t find anywhere else? Are there parks, beaches, or private woodlands? Are there suburban neighborhoods and shopping malls that aren’t anywhere else? People either want to live directly where the fun and the action is, or they want to get away from the hustle and bustle and have some privacy. Those are the main reasons why you will start to see differing price levels.

The problem is people will only pay more if they can’t get something anywhere else. Alternatives in houses and properties mean you have a buyers’ market. Why would anyone overpay for a given home if they could hypothetically find dozens of the same exact house within a few blocks? The key to remember is when you are in an exclusive region that offers non comparable or substitutable benefits, that is when you will have higher real estate prices.

Good School Districts

When you think about the school districts in a given space then you can understand what the space is like. As terrible as it sounds the rule often is the better the school district, the better the area. It means that parents are involved in their children’s’ lives. It means people have good jobs and the businesses are sustainable and profitable, so all of those local tax dollars are pumped right back into the schools. And it also means the teachers are held to a higher standard so when students go to class they continue to learn more, test better, and contribute more to their local society and eventually the local economy as fully functioning adults.

School districts matter as well because when you have young people who have good heads on their shoulders and are becoming educated, you also should see lower crime figures. You also then end up having parents and future parents moving into the region so their children will be able to get into the school system and the whole region continues to appreciate in value because people continuously want to move into for the schools In short, one of the simplest ways to understand the value of an region is to check what school system they are in and what the school rankings are for the region.

Future Development

When you have the promise of future development, both commercial and residential, then you have an area that is up and coming. People want jobs and want to know there will be tax dollars from the business coming into the area. They also want to know there will be other like-minded people in the area as well. And, more than anything, people just want to be in an area where there will continue to be development and a commitment to taking care of the area in general.

Growth in itself is good but it has to be maintained. When you see a commitment to building new things as well as a government that has their mind set on providing an economic climate that others will be able to thrive in, then you already know you have a wonderful recipe for a great area. It is when people are looking for top developing areas that they turn to real estate by PropertyGuru Malaysia to find out what areas are up and coming. When people see that the area will just continue to grow with new things to do, better amenities and features, and a place where you can have a much better quality of life then the basic conclusion is that growth is good and it continues to bring people to a region.

When you think about real estate in general it isn’t too difficult to understand the most basic properties. People only want to pay for what they have to, but they are more than willing to pay for true benefits as well as the opportunity of potential benefits in the future. 

choosing the right property is important...