What property valuation factors add worth to your home especially in this Covid-19 crisis? This question has become an increasingly common topic of conversation in recent months. But what property valuation factors decides how much your home is worth?
By: Hitesh Khan/
There are a number of property valuation factors which determine your homes worth, some are logical, based on economic theories and population density and some are based on more intangible factors, like the feel of a neighbourhood and expectations for future growth.
We have outlined some of the key property valuation factors which effect your homes worth and how they are determined.
1. Supply and demand
Put simply if demand for houses increases faster than supply, then house prices go up. For house prices to fall the demand needs to fall.
2. Interest rates
When interest rates rise, mortgage lenders generally increase the cost of variable mortgage payments. These higher interest rates in turn make home buying less attractive. Since the majority of homeowners in Singapore have variable mortgages, even a small change in interest rates can have a big impact on the affordability of buying a house.
3. Economic growth
As the economy grows and wages increase more people can afford buy a house, this in turn increases overall demand, which increases prices. See number 1.
As levels of migration increase so does the population and more people means more demand for homes. Another factor is changes in demographics; for example rising divorce rates have increased the number of single people living alone and our old friend demand is an issue again.
5. Location, location, location
This is an obvious one. Homes that are closer to the MRT, closer to the CBD or closer to good schools tend to add to the property valuation factors. If you look at any map of Singapore, you will see a high concentration of housing around the city centre. The majority of people want to live close to where they work, shop and go out to enjoy themselves and this naturally causes higher demand for property prices in these areas.
We all know that parking is at a premium in our big cities so if a home has designated parking space, this can significantly increase the value of a home.
9. Home improvements
Updating kitchens, replacing flooring, repainting walls and adding landscaping can add to the Singapore property values. However often homeowners spend too much and don’t get the return on investment when they sell the house. Before making drastic improvements to your house, be sure to talk with your real estate agent so that you use your money wisely on your investment.
Have you ever noticed everyone gravitates toward the kitchen during a party? It’s known as the heart of the home for a good reason. The draw of your kitchen to party-goers has the same value to potential buyers, so a kitchen remodel is one of the best ways to add value to your house. An updated kitchen appeals to a buyer’s emotions and a homeowner’s wallet because, if done correctly, it can give you close to a 100 per cent return on your investment on home improvements.
Updating your bathrooms, especially master baths, will add considerable value to your house. A master suite with his and her sinks, spacious showers and plenty of square footage are what buyers are looking for. Added amenities such steam showers and whirlpool tubs will serve you well, and ample storage is a must.
Traditional ceramic tile floors are preferred over wood flooring because they handle water better. If you want to go green, low-flow toilets and skylights are good choices. Keep your design in the same period as the rest of your house. You can still have modern amenities while retaining a classic look. Don’t be shy when it comes to spending – the average bathroom remodel can get you back the majority of your investment.
Do you know enough about how property valuation is done in Singapore?
Knowing how to calculate the property valuation is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.
Another smart way to avoid overspending on your property is to get the right loan. Getting the right loan can be a much simpler task, but only if you get the right person to it for you. Get in touch with iCompareLoan’s loan consultant to help you get the best loan deal at the right price.
The iCompareLoan mortgage brokers can set you up on a path that can get you a home loan in a quick and seamless manner. We are the experts who do the work for you for free, while you lean back, rest and rely on our professionalism at absolutely no cost to you.
Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.
Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.
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