Factors Influencing Property Value

Real estate has become one of the best investment options in upcoming days. Owning a plot can provide you with good cash flow as well as great tax benefits. Before you invest in the Plot you should know the property worth & money being spent on it.

Lets see the ways how to measure the property worth:

Property valuation

The first thing you should know when you purchase a property is the "Property Valuation" of the investment plot. This will help you to determine how much money you can make with minimal risks. Property valuation can help investors understand how much the investors increase or decrease in value over time.

Location advantages

If you're looking for the real estate investment, It is important to know the location of the investment property, we need to identify the type of property (Plots, Apartment) & its location. Because location plays a major role & we need to access the emergency hubs.

Futuristic approach

We should also consider the futuristic approach of real estate, whether there are any improvements planned for the future, such as new construction or renovation. These factors can help make an accurate valuation of your investment property possible!

ROI

Value is the return that an investor can expect from their investment in real estate. It is a key factor in any investment decision, but if you are just getting started, it’s important to understand how to properly value your property. Here are some tips:

• 1. Determine the current market value.
• 2. Calculate depreciation and amortisation.
• 3. Compare the current market value with future projections
• 4. The value of an investment property is calculated by comparing its capitalization rate with the cap rate of other similar properties in the market

There are three main ways that you can value the property:

Market value –this is the most common way of valuing a house, and it's how most people think about it. It's based on what similar properties sell for in your neighbourhood, and assumes that your property will hold its value over time. This is very subjective, though, so make sure not to base too much on this alone.

Replacement cost –this is how much it would cost to build a new house that looks exactly like yours. This doesn't consider any improvements or upgrades that have been made over time, but it does provide an accurate idea of what it will cost to replace everything inside and out.

The Cost approach -It considers both replacement cost and market value by using a ratio between them.

Our Pillars Property Developers is the best property seller in Tambaram and a great place to invest money.