Are you wondering why real estate properties grow in value? Aside from interest rates, government policies, and economic cycles, real estate investments appreciate in value because of amenities. Keep reading to learn more about the 5 amenities that can maximize returns from your real estate investments.
Growth in Real Estate
Real estate valuation fluctuates because of several factors. However, the industry remains attractive and promising to many investors because of the countless opportunities for investment growth. Real estate can also be a source of passive income. It is generally a good strategy for long-term investing because properties increase in value over time.
What You Need to Know About Amenities
Amenities are added features of a property that make it more attractive to the market. The types of amenities vary according to the type of property. The amenities for a residential property can include a swimming pool, an entertainment room, or a home gym. Meanwhile, the amenities in a commercial property can include a private bathroom, an exclusive parking space, or a lounge area.
Buyers and investors look for amenities that will maximize investment returns in the long run. Conversely, sellers and developers commit to adding the best amenities for property use.
#1 Location
A property in an urbanized and progressive location will have a competitive market valuation. Accessibility to important establishments like hospitals, schools, groceries, and malls is considered one of the best amenities a residential and commercial property can have. You can enjoy appealing returns by saving great amounts of time and money on transportation. You can also access lucrative business opportunities if your property is within a business district.
Take note, property descriptions like “5-10 minute drive from the mall” sell immediately to prospective buyers.
#2 Fitness and Health
Fitness and health amenities make properties more desirable. Especially for condominium owners, a swimming pool and gym make residential life healthier and more productive. Nothing beats high returns on overall health, performance, and wellness.
A study suggests that regular exercise and physical activity can improve work productivity. Workaholic professionals who can squeeze 10-30 minutes of exercise daily become more creative and efficient. This makes fitness and health amenities valuable investments that increase a property’s valuation. Buyers pay more generously for properties with added functionality.
#3 Positive Distraction
There is an increasing trend for recreational amenities that relieve stress. The COVID-19 pandemic has proven the importance of managing stress through positive distraction. Some stress management techniques include exercising, playing sports, or experiencing nature. If you are looking for investments that also take care of your mental wellness, look for properties that have positive distraction amenities like:
- -Open spaces
- -Parks
- -Libraries
- -Roofdeck
- -Lounge
- -Indoor or outdoor garden
- -Recreational area
These amenities stimulate the price appreciation of properties. Not only are they beneficial for personal use but they can also be profitable for business. If you choose to rent out a property with these amenities, you can quote a more competitive price.
#4 Construction Style
The construction style includes the property design and developer. If you watch vlogs on property or house tours, it is noticeable that properties with good architectural design have better market potential. Remember, style and functionality must go together.
For residential properties, a buyer will look further into the property if it contains functional features like:
- -Parking space
- -Smart Storage
- -Specialized rooms
- -Good cabinetry and furniture
- -Air-conditioning
The brand of the developer also contributes to the valuation of a property. For example, a condominium built by Megaworld will have a better reputation and thus more market value as compared to a condominium built by less famous developers.
Note, however, that the developer’s reputation is just a factor in increasing a property’s valuation. You are encouraged to do careful research first before trusting any developer out there.
#5 Technological Infrastructure
Security is a major factor in selecting a residential or commercial property. A property with hi-tech security systems has a significant advantage over the traditional lock and key security system. Condominiums and commercial establishments now have tap ID security systems that verify the identity of anyone going in and out of the building. Modern houses and apartments also use electronic door locks that can only be opened through a passcode or the owner’s fingerprint.
State-of-the-art security systems are considered investments that drive growth in real estate properties. Some of the amenities under technological infrastructure include:
- -Smart elevator dispatchers
- -Modernized parking
- -Occupancy intelligence
- -Enhanced connectivity
In a continuously modernizing environment, investments in technological infrastructures lead to high returns in efficiency and convenience.
Your Needs vs Your Wants
Real estate investments are expensive. Buying a house or a condominium requires discipline in prioritizing what you need and want you want. Amenities improve your everyday user experience. However, you are encouraged to make decisions carefully when purchasing a property. Real estate properties require maintenance and taxes. If your resources are scarce, prioritize the amenities you and your family needs. You can always invest in other amenities you want in the future.
A Worthy Investment
Amenities that are worth your investment must be functional and beneficial to human use. Hopefully, you now have a better understanding of evaluating amenities that promise high returns on your real estate investments. Take note, returns can also translate to intangible gains like accessibility, time, security, productivity, and wellness.
Be attentive to property features that boost profitability but do not overlook amenities that improve your quality of life.
Sources:
Chen, J. (2021). Amenity. Retrieved September 14, 2021, from Investopedia website: https://www.investopedia.com/terms/a/amenity.asp
Bohm, T. (2017, July 6). The four types of strategic real estate amenities. Retrieved September 14, 2021, from Building Design and Construction website: https://www.bdcnetwork.com/blog/four-types-strategic-real-estate-amenities
Sweeney, N. (2016, October 3). Which amenities really drive capital growth? Retrieved September 14, 2021, from Realestate.com.au website: https://www.realestate.com.au/advice/amenities-drive-capital-growth/