Ownership of Lure

News:

The Age Old Buy or Rent debate that was put to rest during the covid-19 pandemic continues to influence property decisions

Property prices increase even though buildings age How is the Possible? In the case of most other manufactured products other than gold ornaments, prices decrease s the product ages

Most People Prefer to buy new homes rather than used properties be cause older properties need more maintenance and repair and because new projects have better amenities and facilities a Tv, Car, Mobile phone rapidly lose value every month because of wear and tear, and newer models are constantly being churned out But while older properties do lose resale value to some extent they retain much of their inherent value to some extent, they retain much of their inherent value of matter how old they get - and if one waits long enough, eventually become more valuable than before.

As in the case of jewellery, the brand of a real estate developer matters, today most homebuyers prefer to buy properties by reputed developers and not only because they known that their under-construction homes will be delivered on time. Branded players invest more into both the quality and location of their projects and also in the scope and quality of project maintenance For this reason, their projects also see much more rental demand 

Do They Depreciate ?

Even with the most careful use, gold ornaments get tarnished over time, Decades after they were first made, they will have lost much of their sheen Nevertheless, the basemate rial - gold-not only retains its value but becomes even more valuable old ornaments can be melted down to make new ones with a brand -new sheen No value is lost in the process and the making charges are already recouped because gold has already become scarer

The cement, steel and other materials used in modern buildings-even those by branded builders -de-grade over the decades However, the basic input land - appreciates, and every property owner's share of the project land becomes more valueable In high quality such as integrated townships and gated communities the developer has locked in the appreciating power of not only land but location as well as reversed green open areas and amenity spaces that add further valueover and above the base value of every apartment owner share of the plots 

Old Building are demolished after 50 to 60years and new ones with superior amenitites are built At this point the original property owners are in the driver/s seat and their new properties are invariably bigger better and more valuable than the first ones

Macro Factors

The demand for property is influenced by population in growth economic conditions and the desirability of the location, If the demand for property in a particular area outweighs the available supply Prices will rise irrespective of the age of the building  

Property prices are in the influenced by overall inflation which erods currention purchasing power and causes products with in built value to appreciate over time Here agian gold and real estate share very similar attributes

Interestingly the age old buy or rent debate was finally put to rest during theCOVID-19 pandemic buy has emerged as the way to go 
why did it take a global health cataclysm to cause a change? There are plenty of theories, but all the reasons are a combination of human psychology and fiscal prudence 

we like to own what we use and we like to see our investment grown and housing prices zooming anywhere between 5-15% in just the last two years the investment sense behind owning residential real estate is far beyond dispute