By: John Christoper Lara | Groundbreak
If you would ask most realtors in town today about what has defined today’s property prices, most of them would all agree that one of the major factors that influence the value of a property is none other than… location.
This may be one of the reasons why it is not a mystery how random pieces of empty lands before now stand as major business and commerce centers which caters the needs of almost ¼ of the country’s population.
For instance, Makati is now the financial capital of the country. It is also one of the country’s most developed cities and it was commended for its thriving commercial and business areas. But, who would’ve thought that before World War II, it’s just a vast empty piece of land until it was converted by people such as a Filipino-American businessman named Col. Joseph McMiking. But, these were decades ago. Now, the landscape is entirely different. Empty vast pieces of land are not a usual sight anymore. Almost all of the best locations are already occupied. The central business areas are already congested and you would only see free spaces on provinces and far-flung areas.
But if you would ask realtors who are really experienced, they would admit that it is more than just location to establish an area to achieve skyrocketing real estate value because when looking into an area of land, there are a lot of factors that influences the value of a property. Here are some:
- Demographics – the best way to determine a property’s value is to understand the people who will be using it. Their economic standing, preferences, activities and reasons for buying the property will serve as indicator of how they will appreciate the value of the property. So, it is important to know their profile.
- Location – a property that is close to a school ,supermarket, hospital and other establishments necessary for sustainable living is a good property and there is high possibility that this will have a positive impact to the its value.
- Interest of Developers and Local Government Units – a good relationship between the local government unit and a developer is always a good indicator that there will be positive innovation and change. This is a promising sign which means there is high probability of high value properties.
- Economic activity – this goes hand in hand with the location. It is important to know and understand the implications of where the property is located. Sometimes, the busier the place, the higher the value. (example: if it is a central business district)
- Political Climate – A lot of things run around politics. This includes investments and economy. The more stable and predictable the political climate is, the more it becomes favorable when it comes to the value of investments.
Combining your knowledge about all these factors can help a lot to identify what property is more likely to cost more and for how long. This way you can think of better ways to manage your investment and you will be able to come up with a decision that will be truly beneficial out of your property.