Whether buying or selling a home, we are interested in the potential return on investment that a property offers. What determines its economic value? Find out in the article below!
Useful article: Top 5 Factors that Affect the Quote in “Sell to Homebase”
First, let's review a few key terms with Homebase when you consider the economic benefits of a house:
This refers to how easily a property can be sold without much modification to its original price.
Take, for example, a house on the main street in District 3 that can be rented out. If the owner wants to sell, they can find a buyer within 1 month.
We’d say this house has high liquidity thanks to the advantages of location.
This is the profit that real estate yields after deducting all selling costs.
For example, the net income of a rental apartment is about 20 million VND/month. You have to pay electricity and water bills, and income tax from the rental of 3 million VND/month. So the net income a year from this property is (20-3) x 12 months = 204 million VND.
The higher the liquidity and potential net income of the property, the greater the value it has.
However, keep in mind that the economic benefits of real estate will not be fixed but rather dependent on the actual situation of the market.
As the demand for houses increases, the value of the house will also go up. When valuing real estate, it is important to observe the current demand levels for the property. A house in a densely populated area will certainly have a higher price thanks to the demands for residential use.
Meanwhile, if farming is gaining popularity, agricultural land plots will be more expensive in that period.
Stay aware of macroeconomic factors as well as they can also change property prices. Economic growth, unemployment rate, population rate, bank interest rates, and more can all have a strong influence on house prices.
With information available on the Internet, you can easily find out how the market is performing and what real estate products are trending. This can give you a helpful overview of prices market-wide.
Homebase relies on a diverse and accurate source of information on the market, along with opinions from internal experts to determine the quote we offer you.
For more information, contact Homebase by phone/Zalo (+84) 964 245 404 or email firstname.lastname@example.org . We’re happy to answer any questions you have!
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