記事 Real Estate Information 5 Real Estate Amenities that Promise High Returns

5 Real Estate Amenities that Promise High Returns

Look for these real estate amenities to guarantee high returns on your investments.

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.

Real estate spelled out in letter blocks.
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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.

A bedside window of a condominium with skyline view.
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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.

A map shown on a phone.
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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 fitness gym with various workout equipment.
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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:

A man walking in a park with colorful trees.
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  • -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.

A modern architectural design of a dining area to the kitchen.
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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.

Male structural engineer leading a team.
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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.

A black and white picture of a CCTV camera
Photo by Joe Gadd / Unsplash

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.

A hand holding a door key with a house-shaped pendant.
Photo by Maria Ziegler / Unsplash

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/