When buying a property, either to live in it or as an investment, it is necessary to take into account certain key points. Among the main ones are its market value and future potential. For this, we must take into account the capital gain of the home, based on the attributes that enhance its price.
According to Leonardo González, Real Estate analyst at Propiedades.com, when choosing a property, its use and potential expectations must be taken into account. This is for the benefit of the owners, inhabitants or tenants.
The real estate portal Properties.com shared what are the attributes that enhance the capital gain of a home.
What is capital gain?
When buying something, we always seek that the cost-benefit ratio is high, that is, that the price you pay is fair according to the quality of the product. The same happens with properties: acquiring a property must be an investment and a flow of services.
Capital gain, like other key indicators of the sector, is a benchmark that you should pay attention to when buying a property. With it you can determine how much the value of a property increased or decreased over a year.
It is important that you take this parameter into account to know if your purchase has the potential to become a liquid investment. Well if in the future you plan to sell your property, you will know if it is the right time thanks to its added value.
Attributes that enhance surplus value
Leonardo González explains that the attributes that enhance surplus value are the following:
- An effective negotiation: at the closing of the sale a fair prospect must be made between the buyer and the seller
- A dynamic and ascending cycle in the location of the property: by reviewing the indicators in the area you can know if the prices are going up or down
- Make it a new property: it means that it has better amenities and has been built under updated codes, rules and regulations
- Demand in the market: this is driven by new public works or investments in points of interest in the area (for example, a cafeteria or a shopping center)
- Residents of the area: those who have a similar sociodemographic profile
Also, it is important to consider other key indicators when buying a property. According to the expert, these should be categorized as follows:
- Property: the well-being or quality of life that the property will give to its residents
- Environment: if the area’s capital gain has an increasing trend
- Security indices: which ensure the quality of life in an area
- Investment: as internal rate of return (IRR), net present value (NPV) or capitalization rate (Caprate)
How to check the capital gain of a property
You can approach a certified real estate consultant, because with their professional help you will have a clear overview of the property that interests you.
It is also recommended that you consult the Real Estate Market Reports on the CDMX. Through them you can see if the capital gain of an area increases or decreases. In addition, you can review other important indicators that will help you make a better real estate purchase decision.