Buying a property is an investment that pays off in the long term. Its capital gain increases over time, so it is important to choose suitable properties so that the yield of said property is greater in a few years. But what does this term refer to? Yarmoloy Group experts mentioned everything you need to know about capital gains.
What is surplus value?
It is the increase in the value of real estate at the time of its second sale, that is, it is the amount that makes the difference between the price at which we buy it and the price at which we sell it. In order for its growth to be favorable over time, various factors influence it, such as the following:
Location
When buying a property, location becomes essential. Is it close to road arteries? Is it easily accessible by public transport? Does it have shops around it, schools, hospitals? A property near the construction of a subway station, for example, will increase in value over time. Areas with ongoing economic and architectural development have a good chance of doubling their price when the property is sold.
Basic services that the property has
It is important to have a good that has electricity, water, gas and telecommunications installations, that are efficient, of quality and that do not represent a constant problem. That it has, in the same way, growth possibilities within its own infrastructure, such as natural gas installation in those that do not have it or recycling dumps that can be installed in a comfortable area of the property.
Property Status
When the first purchase inspection of a property is made, its interior finishes, the condition of the doors and windows, the floor and the ceiling, and the quality of the materials are observed. Likewise, on the outside, the façade, the accesses, the garden, the elevators, the distribution of space, etc. are examined. If any of them is in poor condition or not well built, the surplus value decreases. For this reason, an exhaustive analysis of the property must be made, both of the apartment and of the common areas. We must make sure that everything that is promised to us is consistent with what we are seeing.
Property Architecture
The design of the property has a great impact on its resale price, so it is important to consider the aesthetic aspect of the property: is it an attractive building? Does it have conditions that favor the environment? Does it have sufficient access to natural light in all their areas? Comprehensively observing all these factors influences the decision to purchase a good, whose surplus value will be high in the future.
What to do to increase the capital gain?
In addition to the above, there are some actions that we can take, once we have acquired our property, to further increase the capital gain in the future.
Keep the property in excellent condition. Schedule annual maintenance days that take into consideration walls, ceiling, floor, furniture, review of electrical, water and gas installations and garden care.
Remodel thinking about future sale. If it is going to be remodeled, the impact of this action on the property must be taken into account. Although it is necessary to add the personal touch in the decoration of the house, it is also important that the aesthetics of the space is respected and that it does not affect the infrastructure of the building.
The added value of a property can increase if you pay attention to its internal and external characteristics from the outset. We must take into account that, if we respect these factors, the property can give us significant returns not only in the sale, but also in the rental of the property, being able to generate a return of up to 9% per year.