There are many properties in the market. What you regard to be great may not be good property for another. However, every buyer has one thing in common, they want a good deal on their real estate purchase. Whether the property is a good purchase can be determined by its values.
There are 3 major types of values:
1) Self-occupation Value
First of all, whether the property has commodity attributes or investment attributes, its most basic merits is first of all the value of self-occupation. And this value is measurable by using the rental value of the property.
If you do not self-occupy this property but instead rent a property of the same type and it takes $2,500 per month, then your property naturally has a self-occupation price of $2,500 per month.
2) Location Value
Property of the same quality but located in different locations will have a different value. This is the public resources value.
The value of public resources can be divided into the following:
a. Public Transportation
Steps to Subway Stations, Highways will add value to the property.
b. School District
A good school district will draw buyers to the area to get into the school. This will add value to the property.
This is the same as above, assuming the same quality and other conditions, if there is a large shopping mall, community centre, business services, restaurants or hospital near the property, these provide convenience and they belong to the enjoyment of public facilities. These add value to the property. However, they are not the same as the subway and the school. They don’t have exclusiveness. So the value will not be as outrageous as that of subway or good school areas.
3) Expectation Value
The same type of property under the same external conditions, may suddenly more than doubled in its price. This is due to the change in people’s expectation. When everyone thinks that house prices will rise, house prices will really rise. People are willing to pay more because they see a premium value for the property based on their expectation.
So what kind of real estate property is worth buying? A property is worth whatever someone will pay for its value. Start your research and work with your realtor to break down the values of the property that you are looking for.