Factors Affecting Appreciation and Depreciation of Property
The value of a property is greatly determined by its environment. Positive factors lead to appreciation while negative factors cause the property to depreciate
Other than the factors that affect the initial acquisition value of a property such as location, there are others that affect the property worth after its acquisition by either adding or devaluing the worth. The owner of a property should always strive doing the things that add value to the property rather than decrease it. However, a property owner should understand that people have different tastes for property which vary with geography and demography. Some of the factors that alter the value your property includes the following:
Plants and Vegetation
A property surrounded by green vegetation and trees is likely to acquire value over some time. Presence of invasive weeds that spread over an area and are hardly controlled, such as; prickly pear, lantana weed, and Mexican marigold, can keep people away from a property. This will make the owner of the property dispose it at a relatively lower price.
An area with low crime rates has properties that gain value over time. Areas with high crime rates often have few buyers since they speculate that the property could also be affected by the crime. If the property is affected by the crime it will see loss which will be suffered by the potential owner. Properties in crime affected areas suffer decreased prices.
An area with low pollution levels has property that increases in value continuously. However, increased pollution in a place sees great decline in value of the property. This is because the people living in such an area are prone to infections resulting from pollution.
A property in a place that suffers traffic jams due to the increase in the number of vehicles will drastically decrease in value since accessibility of the property is problematic. Contrary, in an area that is not affected by traffic congestion, the value of the property is likely to appreciate.
Structure and Outlook
presentable outlook of a property attracts potential buyers. Due to the increased demand of the property there will be an increase in value. Cracks in the foundation of a property as well as on walls, forces down the value of a property since it will require a new owner to incur an extra expense to repair.
Dirt among other things which shows poor property maintenance see a decline in the value of the property. Faulty structures, leaking water systems among others negatively affects the property prices unlike a property that is well maintained and tidy.
A property that does not have an efficient energy system declines the property value. This is because the potential owner will be incurring the cost of meeting the energy requirement. On the other hand, a property that has a solar system, a stand by generator, cooling systems, among other facilities that enhance efficiency add value to your property.
Local School Ratings
Property around a school that performs well are likely to add value over a period of time compared to a school of average performance. Potential property owners consider acquiring a property near a good school because of the quality services offered to students or pupils.