Factors that increase the value of a property
“The cadastral value should never be greater than the market value, it cannot exceed the price at which it could be sold.”
The cadastral valuation is part of the delimitation of geographical areas that serves to establish the value of land and construction, the first being the determinant to assign a value to a piece of land.
Land value refers to the value of a piece of land before it is built on. To fix it, it is necessary to identify the type of land, whether rustic or urban, since this classification allows the property to be better valued according to the criteria applied in each case.Real estate investors are always interested in buying a property when they know that it will appreciate and that is why they can obtain an increase in the value of a property, but not only real estate investors are attracted to this business.
Preparation of a Project
Location is one of the factors considered to calculate the cadastral value of a piece of land, it is essential that, when comparing your investment options, you evaluate the potential of the area in terms of infrastructure, road connectivity and proximity to important sites.
These aspects will give greater value to your property over time. For example, the value of land increases in a property if it has a federal highway entrance because it means that it allows you to easily move to other places.
We recommend you inquire about the projects that are at the door to be developed in the surroundings of the area. If the construction of new buildings and real estate complexes is planned, there will be more infrastructure that will benefit the value of your land.
Increase in Value
When talking about the increase in the value of a property, it refers to the increase in the price that can be achieved by real estate over a period of time. One of the goals of investing or buying real estate is to get a positive return on investment, if you decide to sell the property in the future. Countless homebuyers believe that the physical characteristics of a home will lead to an increase in property value.
The location of a property is the most obvious factor that affects value:
- If the house you want to buy is close to the city center, in a highly sought-after location
- If you have mobility options and public transport
- If most people want to live close to where they work and enjoy their free time
Why properties neighboring these areas of labor and entertainment concentration will be more expensive is a matter of the fact that some neighborhoods simply have a better reputation than others, due to factors such as unemployment or crime rates.
Offer and demand:
If demand exceeds supply in a given market, property prices will rise. This is because more people are in the market looking for fewer property offers and competition to secure a home drives up prices.
A change in interest rates can affect the value of a property. If financial institutions increase interest rates on your mortgage loans, your average monthly payment will increase. This fact always has a great impact on the possibility of purchasing a property due to the higher cost of financing.
The general performance of the economy can also have an impact on the real estate market. If the economy is experiencing strong growth, with employment and good working conditions, more people can buy a property, which leads to an increase in property values. At the opposite extreme, a bad state of the economy will bring a drop in demand and a decrease in prices.
Population and demographics:
The more people who want to live in a particular neighborhood, the greater the demand for properties in that area. At the same time, the type of people who live in the area will also influence property values. For example, if families with children are the dominant demographic in the area, multi-bedroom homes will be more in demand than small apartments.
Size and facilities:
The characteristics and size of a property also influence its value. A four-bedroom home is likely to be more expensive than a two-bedroom home in the same area, while features such as additional bathrooms, garages, pools, and outdoor entertaining areas can all impact the price of the property. . In highly populated cities, the absence or abundance of parking opportunities is another critical factor.
Efficiency in quality:
A property made of good quality materials may have a higher value, in part because this makes the property easier to heat and cool. Given how expensive electricity and gas bills can be, things like solar panels, insulation, and double-glazed windows can add value and curb appeal.
Among the most important factors to consider are the location, dimensions, characteristics of the area, price and conditions of sale. Clarifying that, to obtain the price, it must be homogenized (that is, equate, correct) and for this a corrective coefficient is necessary, whose determination allows a reasonable appraisal. Among the corrective coefficients the most important are:
- Size or Area Coefficient
- Update coefficient
- Supply coefficient
- Location coefficient
- Land use quality coefficient
- Topography coefficient
- Climatological, meteorological and water resources coefficients
- Front-Back Coefficients
We at InfoTerra study all the factors and coefficients that involve the tedious and meticulous calculation that you need to present the value of the property of your interest.