When buying a house, whether for living or investment purposes, the appreciation of that property is of immense importance. After all, it is one of your assets, and you will expect its value to increase in the long run. Therefore, smart decisions will lead to some guarantee regarding the growth rate of your property. Buying apartments in Pune is an expensive decision, one that should be taken with extreme care and precaution. This article should help you make a lucrative decision.
Factors Affecting Rate of Appreciation of a Property
1. Demand & Supply - The higher the demand, higher the price - this is a simple formula that will ascertain whether the price of a property or a locality appreciates or not. The demand is dependent on a variety of factors. It is important to cash in on this demand in the initial stages because once it increases beyond a certain limit; the buyers will be few and far between.
2. Features - Features with reference to the home and the area need to be considered. Rate of appreciation depends on how convenient it is for a family or an individual to live there. Factors like, the size of the rooms, power backup, amenities, child-friendliness, grocery shops around the property, availability of public transport, access to main roads and highways, etc. are some of the factors that will assist in increasing the price of that apartment. The development of the area is directly proportionate to the value of the houses being sold there.
3. Inflation - When inflation hits, the prices of most properties are likely to increase. This is dependent on the economic condition of the country. Keeping a beady eye on the economic atmosphere when buying and selling will ensure you get maximum benefit from the transaction. Areas with good infrastructure, road networks, etc. are generally not affected by such negative factors.
4. Home Loans - When banks increase the home loan rates, the affordability decreases and so does the demand. A decrease in these percentages sees an almost immediate demand for homes.
5. Population - Growth in the population of an area increases the demand of properties there. This is the reason why sometimes, prices shoot up in the absence of other important factors.
All these factors are mostly dependant on each other. With the population in Pune on an ever-increasing trajectory, the properties in most areas are appreciating as well. It is important to keep these factors in mind to ensure that your property appreciates at a healthy rate.
Factors Affecting Rate of Appreciation of a Property
1. Demand & Supply - The higher the demand, higher the price - this is a simple formula that will ascertain whether the price of a property or a locality appreciates or not. The demand is dependent on a variety of factors. It is important to cash in on this demand in the initial stages because once it increases beyond a certain limit; the buyers will be few and far between.
2. Features - Features with reference to the home and the area need to be considered. Rate of appreciation depends on how convenient it is for a family or an individual to live there. Factors like, the size of the rooms, power backup, amenities, child-friendliness, grocery shops around the property, availability of public transport, access to main roads and highways, etc. are some of the factors that will assist in increasing the price of that apartment. The development of the area is directly proportionate to the value of the houses being sold there.
3. Inflation - When inflation hits, the prices of most properties are likely to increase. This is dependent on the economic condition of the country. Keeping a beady eye on the economic atmosphere when buying and selling will ensure you get maximum benefit from the transaction. Areas with good infrastructure, road networks, etc. are generally not affected by such negative factors.
4. Home Loans - When banks increase the home loan rates, the affordability decreases and so does the demand. A decrease in these percentages sees an almost immediate demand for homes.
5. Population - Growth in the population of an area increases the demand of properties there. This is the reason why sometimes, prices shoot up in the absence of other important factors.
All these factors are mostly dependant on each other. With the population in Pune on an ever-increasing trajectory, the properties in most areas are appreciating as well. It is important to keep these factors in mind to ensure that your property appreciates at a healthy rate.
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