Unusual Factors that Influence Property Value
When you are buying or selling a home, there are a several factors that often influence the property value. Here are a few of the less thought issues that could be influencing the value of your property. You should keep these in mind if you are planning to buy a new home.
Travel routes
If new direct flights have been added to your local airport from major business centers, then your city would be witnessing a rise in foreign investments, especially that more and more companies or employees will be likely to purchase a property in your area which could cause an increase in prices. On the other hand, if a new major train route is going to be built in the area where you live then your property value might go down due to the noise pollution and disruptiveness from rails.
Major layoffs and hiring freezes
Cases like major layoffs or a hiring freeze in the major sector of a city, could lead to an abundance of sellers and not enough buyers, as families will need to downsize or move elsewhere to find better opportunities. While a hiring freeze is not directly related to the real estate market you will find that such actions will have an indirect impact on your home price. This was the case in Detroit where their economy heavily relied on the automobile industry.
Shopping centers
While this might sound unusual, it is likely for people to follow new shopping malls. If a new mall opens up that attracts a lot of clientele, then it is likely that more and more people want to live near the area. The location of shopping malls and their popularity plays an important role in determining property prices.
Internet speed
Another factor that most people don’t think about is internet speed. The internet is not the same speed everywhere you go. The internet hotspots and places where there are higher speed internet connections are increasingly attracting a larger number of investors. New neighborhoods that install fiber optics to the curb appeal to the tech savvy buyers and those who do a lot of online business. Those areas tend to attract not only home buyers but also companies which in turn could also cause a shift in the housing market, especially that people want to live near their jobs.
Government support
If a provincial or local government decides to put out incentives to encourage people to move to certain areas, then those areas will generally witness an increase in the value of properties as there will be a higher demand for these properties. Some cities will give large monetary incentives to de-convert multiunit buildings to large single family homes in order to revitalize a neighborhood or attract home owners instead of renters.