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Wednesday, 9 December 2015

YOUR REAL ESTATE DREAM ! HOW TO BRIDGE THE GREAT DIVIDE?

You harbour a dream of owning a property or  of
adding  two or more to those you already have. In order for such a dream to see the light of day as opposed to having it remain as just  a  dream forever, you need to have a clear picture of market realities and other fundamentals at play.             

LOCATION. First  and foremost you should know that in real estate the effects of supply and demand vary with location. It is therefore, misleading  to argue that a stand in ZIMRE should get a higher price because the same stand in Mainway Meadows (another middle density area) is getting such prices.  ZIMRE and Mainway Meadows may be equally good in terms of land development elements like quality roads and sanitary systems  but in terms of open market value Mainway Meadows beats ZIMRE because its closer to the CBD and established social amenities.



The cost of change when one begins a new life  in Mainway Meadows is within an acceptable range. One does not travel long to access critical services  from , example medical specialists and the central government in the CBD. For a family with little ones  of school going age, the cost of change  when trasfering to new institutions  is also negligible  as plenty of relevent institutions are dotted across the neighbourhood. So after premeditating  upon these and other attributes prospects in the middle density segment are likely to converge on Mainway in a manner that is better than what happens to less priveledged alternatives.

VALUE  ADDITION. When selling in an area where demand is poor you need to creat it.  You creat demand for property by adding value.  This increases your selling points and prospects will always think twice before they go to areas with higher demand. The basis of value addition  in real estate is making a property habitable  or improving its habitability. A habitable property meets the housing standards  of the municipality  and improving habitability  means adding some luxuries as detectf by the tastes of the target market.  Therefore, value addition is meant to lure a  prospect  and make him ponder upon the benefits of a property  that will right away give him accomodation or rental income as opposed to one  for which he pours all the money yet on it there is no shelter from which to start from.
   
    When  selling in an area that has poor demand one should not lose heart because something can be done to improve things. Furthermore, you should  remember that habitability  always receive consideration  also because of its connection to the physiological need of shelter. But if you are harboring a burning passion to invest in these  high  value areas like Mainway Meadows,  Adylinn and Borrowdale Brook, what is the best time to do so ?

TIMING.  The best time to do so is between  January and March  when demand is poor  because of low levels of savings after most of it would have been spent during the holidays. If you have cash during this period you can therefore leverage on that in order to negotiate prices down . After buying during this period if you are to later sell you will make great returns on investment. Finally, hope you will also read my article on investing  with small savings so that you can see property investing  and value addition in a different dimension.

2 comments:

  1. The details which you have shared, very helpful to know the fact. Thanks for the sharing.

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  2. Good to see these helpful information here, Thanks lots for sharing them with us.
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