We are all familiar with the old adage about Location, location, location being the most important factor in choosing a property where we can settle with our families or just to invest in. But let’s say that there is a property available in the market that is near the good schools, walking distance to the train stations, and just 30 minutes from your place of work. However, the property is located on a narrow road surrounded by informal settlers, notorious for being a haven of street criminals and drug addicts, would you still consider living here with your family?
While there are really a lot of other factors affecting property values other than location like macroeconomic influences including GDP, income growth, Interest rates, influx of foreign investors, taxation issues, and the like, there are also the more direct factors that affects the decisions of prospective buyers which greatly influence the level of demand. There are considerations like the overall design of the property, the proximity to good schools that the target market can afford, convenient access to public transportation, distance from the place of work, shopping and recreation, good roads, and availability of other property options within the immediate vicinity.
But for end-users, the one most important consideration on their list is the type of neighborhood around the property that they are eyeing. Is it safe? Is it peaceful not only in terms of the absence of lawless elements but also in terms of neighbors respecting the rights and privacy of the other neighbors and the community in general? For the high-end market, they would always prefer to be and live in a community of people of the same class. If the names of the residents are really worth dropping in bragging about, in a positive way, then it definitely also affects the values of the property in that area. In the same manner, if your next door neighbor is a notorious character, and thus may endanger the safety of the people living in your household or might affect the peace and order situation in your community, people may think twice before moving into your neighborhood or specifically buying your property, and this will definitely affect your selling price.
A community does not necessarily have to be high end to make it very attractive for prospective buyers. Reputation will always come first before the investors even come to view the area or the property. Then, there is the first impression during the actual ocular inspection. A very clean surrounding speaks a lot about how the people live there, how they cooperate to keep it clean and how organized the people are. Police or security personnel visibility also definitely adds value to the perception of prospective buyers.
Home hunters would always look at the surroundings first before looking at specific properties. In some cases, they don’t even bother to get off from their cars to inspect the houses if they already get turned off with what they see in the neighborhood. Less desirability means lesser demand and consequently lesser value.
For condominium projects, while there is supposedly more control in the maintenance of the entire complex, the culture and observance of house rules are very noticeable as soon as you enter the compound and go around the common areas. Living in close communities like these actually requires more sensitivity to the observance of the rights and privacy of one’s neighbors. With hundreds of families coming from different areas, bringing with them varying cultures, habits and even religions, some clashes may be unavoidable. This is why a strong and united association or condominium corporation is very important. They should make their residents/members realize the importance of the upkeep of their complex and the harmonious and how it affects the value of their properties.
So there you go mate, if you really want your property to continue to appreciate in value, you should do your part in making sure that your neighborhood is a community where everyone would wish to live in.