Before deciding to invest in a new property, every one of us considers the return of investment in case of a potential resale of this property in the future. Considering and understanding the potential resale value is vital in making the right choice. Even if you intend to live there for the rest of your life, it’s such a substantial investment that looking at it from all possible angles is a must as you may never predict your future circumstances. So how exactly do you determine which property is good for resale and which is not?
What does the property resale value actually mean?
The resale value of a property is defined as “the amount it is expected to sell for at some point in the future. Many things, including any improvements made to the property and the overall age and condition of the home, can affect the resale value.”
How do you know if a home has good resale value?
Especially if you have no prior experience in the property market, it may be challenging to predict the potential resale value. Aside from this, the property market fluctuates, and unless you have a keen eye and sufficient prior experience, you may make the wrong choice. As the leading property consultants in Cyprus, we have put together 5 tips on how you, as an investor, can make the right decision and what you must consider in the process.
As you have would have most probably guessed, the property’s location is at the top of the list. Purchasing a home in a good location ensures that your home will be a hot commodity when it hits the market in the future. As long as the location continues to improve and attract new buyers, your investment will likely pay off later down the road. In Cyprus, Limassol has proven to be the real hot spot amongst a vast range of investors, and property prices have been rising drastically over the last 10 years. A prime example would be this luxury villa located in the prestigious and highly demanded area of Agios Tychonas. Aside from the popular and quiet location, this property is positioned close to the city center, the beach, and all possible amenities.
Close access to key amenities is a must for any lucrative property purchase. Having direct and close access to amenities such as schools, banks, restaurants, supermarkets, and more is of high convenience and pays off in terms of the property value. Limassol, due to its growing appeal in terms of property investments, has become quite traffic-heavy, and having proximity access to key amenities has become a critical aspect of property valuation and, of course, comfort.
Architectural and Interior Design
While a home can be located in the perfect area with all the access to amenities you need, if its design is not appealing or way out of the current trends, you will stand a lower chance of reselling at a good profit margin. While the property design trends are slow to change, you have to look at the long-term future when investing in real estate. Therefore pay close attention to what appeals to the buyers today and what most likely to stand out 3-5 years ahead. A prime example would be these 2 Bedroom apartments located in Erimi, Limassol. Aside from being a newbuild, the interior and exterior designs are very modern and in line with the current trends. Investment in such a property would truly pay off in the future, especially considering the high demand in this new and already developed Limassol district area.
The Floor Plan
This would be one of the most challenging aspects to assess if you lack prior experience in the real estate market. There are a few aspects to consider based on our experience:
- One-story homes have the greatest resale potential, thanks to a lack of stairs. Older buyers and those with physical limitations find one-story homes to be more well-suited to their needs.
- Families with young children often find it’s easier to have all the bedrooms on the same floor. With this in mind, homes with a master bedroom on a separate floor may have trouble selling.
- Three-bedroom homes tend to attract more buyers than two-bedroom homes.
- A somewhat open floor plan with a thoughtful and smart flow will appeal to most buyers.
Despite Cyprus being a relatively small country, the neighborhood will also certainly play a big role. Look out for homes located in safe and quiet streets and neighborhoods away from all the hustle. Also, pay very close attention to the surrounding properties. Finding and selecting the right neighborhood based on these criteria will broaden your potential buyer pool in the future. Do not be afraid to scout various locations and speak to the residents in these areas.
Are you planning to move soon?
As you can see, property investment is not as simple as it seems. Not unless you have prior experience and the knowledge to make the right choice. Of course, we do not doubt your ability to make a selection based on your personal preference, and you have the full right to do so. Still, as customer-focused property consultants with vast experience, we are here to help and guide you to your new home and protect your investment’s future should you need our assistance.