Anyone looking for a new property is quickly faced with the question: should it be in a residential area on the outskirts of the city, in the city center or in the countryside? The location of the property is a significant factor in its price. The better it is, the higher the value of the property andof the house. But what is actually important when it comes to the real estate situation?
The location of the property determines its value
Although different factors have an influence on property valuation, its location is a particularly key aspect. In Brandenburg an der Havel, for example, it is crucial whether the property is located near the water or in a more rural location. The influence on the price should not be underestimated here and in this case it is advisable to have oneReal estate agent from Brandenburgto consult.
In addition, such experts take into account the condition and furnishings of the property. Nevertheless, poor interior design in a better location is always preferred.
Macro or micro location: that's the difference
Two factors are particularly important when valuing real estate. One is the micro location, the other is the macro location. In combination, they determine an important part of the value of the property.
With the term “macro situation”refers to the location (region, city, residential area) of a house. It is also important whether it is in a central location or whether the property is on the outskirts of the city.
In the case of a micro location, however, the neighborhood is evaluated. Are there green spaces nearby? Are important contact points easy to reach? The development in the surrounding area also counts as part of the property's microlocation.
Residential location: These categories exist
After evaluating the house or apartment location, the property is categorized. There are the following four categories:
– Easy location
– Average location
– Good location
- Best Team
Commercial real estate, on the other hand, is categorized between 1A and 2B, although further subdivision is possible.
These factors influence the value of the location
A well-kept environment, a popular residential area and good infrastructure characterize an excellent real estate location. This includes different criteria.
– Good local infrastructure.
– The local or supra-regional significance of the location.
– The image factor of the area.
– Local security in relation to natural disasters.
Since all of these points have a significant impact on the value of the property, the location is in most cases more important than the building itself. If the location is bad, the object on the property determines the price that can be achieved.
Rental prices, land value and market value
Important sources of information for the assessment of real estate are the rental price index, the land value and the market value. These values refer to both the micro and macro locations.
– Rent price index: The rent price in popular districts is significantly higher than elsewhere. It provides information about the value of the property based on its micro-location.
– Guideline land value: This guideline value stands for the price of the property and is another indication of the location value. Since it is updated regularly, it can continue to develop.
– Market value: It describes the price that can probably be achieved on the market. He combines the micro and macro location as well as the condition of the property.
What is a bad real estate situation?
A simple or poor real estate situation is primarily reflected in external features. This includes, for example, an unkempt streetscape, inadequate infrastructure and neglected buildings. But even if the construction restricts its residents or there are health-endangering environmental impacts, it is considered a bad location.
Investing in real estate: Location counts here too
Houses and apartments are not just...Interesting housing option, but also as an investment. In both cases, the assessment of the situation is an important principle of the general assessment. Anyone aiming for a long-term investment should therefore pay attention to an ideal location value. Both the micro and macro location of the property must be taken into account.
