Factors that Affect Value in Investment

Prices are often the primary consideration of consumers when buying a home. And, that’s not wrong because the price can indeed reflect the quality of a product. Just remember the expression “there is a price there is a way”. Developers love to mention locations as price determinants. But the statement was only half true. There are still many other factors that also affect house prices. House price is one of the few factors that determine for potential buyers in making decisions (to buy or not) against a home. But the price of the house itself is determined by several factors that make up a price. You can visit lombok real estate if you want to start investing.

Factors that determine the price of Property investment include:

– Land Price
The land is a medium for erecting a building, therefore inevitably the price of the land affect or even determine the selling price of a house. If the price of the land is expensive, the price of the house would be expensive. But if the price of land is cheap not necessarily the price of the house is cheap too.

– Price of Building Materials
Building materials include sand, iron, cement, bricks, wood, and others. Building materials as we know form a physical form of the house itself. Therefore the price of building materials or this material determines the selling price of the house. Even the price of building materials itself is composed of various factors. One of the main factors of price building material is the affordability factor of raw materials.

– Housing location
The location of a real estate is not trivial in determining the selling price of the house. In addition, we must understand that quite a lot of potential buyers who prioritize location than other factors. In other words, potential buyers tend to search for locations first to consider other factors.

– Other Reasons
The selling price of housing is also influenced by many other factors, such as project costs that can be divided into two fixed costs and variable costs. Fixed costs are costs that are not influenced by the amount of output or production volume. While the variable cost is the cost that is proportionally influenced by the amount of output.