Friday, 21 October 2016


When you are seeking for a property or new home, it is important that you understand the factors influencing the property valuation. To refine your decision-making process, listed below are a few factors that can affect the upgradation or degradation of a real estate investment or the property value.

1. Location
The prime factor that strikes everyone’s mind first is the location of the property they are going to buy. Employment centers, medical facilities, shops, and schools are a determining factor for many families and young couples when buying a home. Exposure to a wide array of local amenities and good transport links increases the value of the potential property.
2. Geographical Stability
Geographical stability is another important factor that is taken into consideration while looking for a property. Areas that are prone to the effects of natural calamities, such as flooding, tsunamis, earthquakes, or volcanic activity, are poor choices when buying property. You would be concerned about your family’s safety, in addition to your loan viability and your insurance costs.
3. Age and Condition

The age of a property doesn’t directly reduce its value. However, the condition of a property makes a vast difference. An old but well-maintained property can achieve a valuation that is the same as that of a new build of equivalent specifications. Keeping your potential property well-maintained will keep its value high.
4. Size and Improvement

The size of a home affects the initial and basic value of the property. The good renovation also helps to hike the property value. However, making poor renovation choices will cause your potential house to reduce in value. Updating kitchens, replacing flooring, repainting walls, and adding landscaping can add to the value of a home.
Home loans can be taken for improvising the existing property. An expert should be consulted to renovate in a professional and specialized way to earn better profits. The benefit earned should be equal or higher than the loan taken.
5. Population Movement

In any country, population densities incline to areas that are more attractive. This is a slow process and can be difficult to predict or identify. However, you should understand how this dynamics may affect the value of your potential property.
If the employment hub of a city moves from the center of the town to the outskirts, half of the city will have to travel farther to work, reducing the value of a real estate property in terms of its ‘proximity to employment hub’ factor. The other half of the city, in turn, receives a boost to their property values for being closer to the employment hub.
6. Legalities, taxes, urban zoning

Taxation zoning, government development, and economic stability play an important role in the longevity of real estate. Changes to zoning within a town or a city can influence the value of a property. Increased taxation in the center of the city will decline the value of residential property in the area, making it cheaper for residents to live outside the center and commute.
Conversely, this could also increase levels of property value by introducing a new employment hub.
7. Surrounding Area

The neighborhood or general area surrounding your home can adversely affect your home's value. Some neighborhoods are more desirable than others. Also, some areas are avoided because of major traffic or highly busy roads due to commercial activities.

Paying close attention to the dynamics of developments (or those planned) for the areas adjacent to your property will be a key factor in determining the increase or decrease in value of your real estate investment.

So, location, improvements, general area and the time of year can affect property value. Keeping in mind the key factors, the value of the property can be increased multiple times.

Friday, 14 October 2016


Real estate comprises a significant portion of most people's wealth. There are certain factors we simply can’t control when it comes to the productivity of the real estate market. Here are some things to consider when evaluating your potential success in the field.

·       Demographics:
Knowledge of demographic factors such as age, race, gender and median income of a particular area will help us presume market trends and better position your homes for sale. It is a significant factor that affects how real estate is priced and what types of properties are in demand. Shifts in the demographics of a country can have a large impact on real estate trends for several decades.

·       Interest Rates
Banks and the global economy can greatly influence the real estate market when it comes to interest rates. Changes in interest rates can majorly affect a person's ability to purchase a residential property. That is because as the interest rates fall, the cost decreases, which creates a higher demand for real estate, which hikes the prices.   Keep an eye on what’s happening in the global market and with foreign investment as these play great roles into the expectations of the local market as well.

·       Economy
Another key factor that affects the value of real estate is the overall economy. This is generally measured by the GDP, employment data, manufacturing activity, the prices of goods, etc.
The state of the economy plays a large part in the amount of money that is available for people to buy homes. Factors such as politics and natural gas and oil production contribute to the state of the economy and, consequently, the real estate market.

·       Government Policies/Subsidies
The legislation is also another factor that can have a sizable impact on property demand and prices. Tax credits, deductions and subsidies are some of the ways the government can temporarily boost demand for real estate for as long as they are in place.

·       Environmental Consciousness
Homes today are more environmentally friendly than ever with increased awareness of builders and homebuyers. Examples include more efficient mechanical systems, extra insulation, and low-consumption water devices. Such factors should be kept in mind as they affect the interest in a particular house or apartment.

Working in real estate can be difficult but knowing how to presume its pros and cons can protect us when things turn south. Keeping these factors in mind while starting prospect for new buyers, will provide an additional advantage over other agents who simply don’t plan ahead.

Tuesday, 4 October 2016

Australian Housing Affordability: Mistakes in the Past

Australian Housing Affordability: Mistakes in the Past
There’s been quite a discussion about the actual reason for that is responsible for the current Housing Unaffordability issues in Australia. Most of the times, the discussion turns to be a debate about domestic and foreign investors. But a closer look into the situation tells things to be otherwise. If we look back and try to rethink about the whole situation from the beginning, the reasons get clearer.
Australian democracy is a kind of society known as the Property-Owning Democracy. It is a place where almost 70% or more of the population owns the house they live in thus majority owns the property. Let us go back to the end of Second World War. After the Second World War, Australian government not only quickly claimed their lands but also made it available for purchase to its people, the so-called “Baby Boomers”. And this was the prime reason for a Property-Owning Democracy. The idea did help the Australian government to regulate the currency. But now the population is facing the affordability crisis.
Furthermore, investments from the foreign investors along with the investors themselves also turns out to be a big point that went overlooked. It did help the economy but again the question of housing affordability stood as a nightmare for the local population.
Australia’s actions in past play a major role in the adverse situation of its current real estate market. The government needs to come up with better schemes to save Australia’s real estate market. For more updates about the Australian Real Estate keep following us.