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October 2016

Buying the best House in the Neighbourhood? Here’s why You Shouldn’t.

Everybody wants to be the best dressed-up person in the party. Everybody wants to have the best car among all the friends. So, is buying a house any different? Don’t we want the best house in the neighbourhood? We would certainly want. We want the neighbours to feel envy every time they pass by our home. More importantly, we should be able to introduce our house to our friends with pride as it is the best among houses as far as they can see.

It sounds intimidating but probably the worst idea that anyone can have. From the future point of view, buying the worst house in the neighbourhood is justified but never the best house. Let us see why it is so.

1. Future price is dependent on the location
The house may be the best in the area but the area matters the most. A house in the bad locality never sells for the good money. One can improve a bad house in the prime locality but a bad locality cannot be improved after buying the best house in it. When the property appreciates, it goes up with respect to the location. The location with the upcoming Govt. projects, where the infrastructure is going to improve, and with all the basic amenities nearby, gets a high appreciation over a duration of time as compared to the other locations. So, one should always eye at the location rather than the house at that location for future perspective.

2. Resale value is unaffected by the upgrades
Renovations in the house help the owner to earn a few extra money. Think again! This is not in the case of the best house in the neighbourhood. The price of the house is already much and any new upgrade would just be useless. When compared to the other houses in the same locality, the upgrades just appear as the luxury and most of the home seekers in India are interested in affordability. Never upgrade a house when the neighbouring houses aren’t a match.

3. Neighbourhood appreciation affects house price
The other houses in the neighbourhood affect the selling proposition of the best house. One does not buy a house, he buys the neighbourhood. If the neighbouring houses are not managed well; if the owner feels uncomfortable in coming to the balcony due to rotted plants in the front yard of the neighbours, why would he buy the house in the first place? We are not implying that the small houses are bad or a sore to the eye as compared to the big luxurious villas, we are saying that the luxury is always comparative and in the case of buying a house, the neighbouring view matters equally.

4. The house would always be overpriced
Being the best house in the neighbourhood, there would be no other house with which the price can be compared. When the potential buyers visit, they would always be hesitant to spend that much money when the next house is available at just the half price. Many homeowners are compelled to sell their property at the cheaper prices otherwise, it gets converted to a distressed property and gets sold at even lesser properties after years of waiting.

5. When the market goes down, the loss is maximum
The best house would also mean the best price. If someone is buying the most expensive house thinking it would yield even better profit in the future, that would be a hoax hope only. If the market goes down, there would be negative cash flow and that would mean the maximum loss too.

So before buying the house or 2 BHK flats in Jaipur, one should be looking at the long-term benefits. A buyer becomes a seller after a considerate period of time and if the buying is not done keeping the future options open, selling becomes tough. See the location, neighbourhood, and the scope of appreciation of the property.

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It’s All Interconnected: Infrastructure Development Equals Rise in Property Prices

The price of the real estate is directly proportional to the infrastructure development. There is no doubt to the fact that the properties in the metro cities are skyrocketing while in other parts of the country you can find the affordable housing solutions. There are many factors that affect the price of the real estate but the socio-infrastructural development being the prime one. It brings a seismic size momentum in the property prices. As a matter of fact, the real estate market is never quiet, it witnesses the rise and falls in the property prices. There are many individual factors that affect the property prices like the amenities; gym, swimming pool, security system, park, etc. but that is negligible as compared to the overall biosphere. No one purchases the most expensive house in the locality even if there is a valid reason for its price.
Let us see how the price of the property escalates with the infrastructural development of the area.

Event: Infrastructural Development

With the expansion of Govt. schemes in the area like Metro, highways, flyovers, transmission lines, solar and wind energy projects, the area comes to the limelight. The connectivity of the area with the neighbourhood increases. The area is supplied with uninterrupted water and energy with the setup of the energy units. The shopping malls, educational institutes, healthcare facilities etc. results into influencing the property value.

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Opportunity: More Builders show the interest in the area

The builders today invest in the localities which have the most to offer to the buyers. The properties in such areas sell fast so it is a smart decision to start a project there. Truth be told, the real estate market is not in the best shape. Many builders have accumulated a huge inventory of the houses which are not selling. As such these builders think ahead and build only what does not get stuck with them in the future. The flats In Vaishali Nagar Jaipur sell fast because they are well-thought and well-connected.

Affect: Buyers prefer such locations even at higher prices

People today want peace and sorority. They are ready to spend more if it means comfort. After hectic work schedule, they want to sit and relax away from the hustle of the city. The newly developed posh areas offer them that comfort and hence, they readily buy a property in the locality. Who would like to go to a movie when they have a personal home theatre? Who would like to struggle with the traffic on weekends to go to a mall when they can get one one nearby? Who would risk their children coming home alone when they can get a house in the vicinity of one of the top schools of the city?

Result: As the demand increases, so does the price

As more and more people start showing interest in the properties, the competition leads to the price hike. Call it the matter of pride or the matter of comfort, buyers want to live in the prominent areas of the city. There is one more reason, though. The property at such developed locations sees a tremendous appreciation which makes them the best bet to invest. As the demand for the houses in an area increases, the prices climb up.

Whether you are buying a real estate to live in or to invest for the future, the locality and the infrastructure matters. When you live in an affluent locality, it gives you comfort and boasts the status in the society. When you invest in such properties, the money comes flowing after a considerate period of time. Research before buying a real estate. Look out for the plans of the Govt. for the area. If done wisely, the real estate investment is the best one there.

If you have any queries regarding the properties in Jaipur, feel free to contact us, we will provide you with the best assistance.

Original Source : http://www.ownaroof.com/blog/its-interconnectedinfrastructure-development-equals-rise-property-prices/

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