The property has several unique characteristics that affect its value. There are economic characteristics and physical characteristics. Real estate is a product that needs to be purchased, but it differs from everything else because of the characteristics that will be discussed here.
Economic characteristics that affect value are scarcity, improvements, constancy, and preferences in the field. The deficiency is simply demonstrated in the statement: "They no longer do." The supply of land has a ceiling and cannot be produced more than it exists today. However, this value of this margin depends on other characteristics.
Improvements, such as buildings on one piece of land, can affect the cost of neighboring lots or the entire community. If a large company builds in some depressed area, the value of their will’s life will increase due to the introduction of jobs. This value will affect neighboring communities, which to some extent will increase the value of real estate in these areas.
Constancy is related to infrastructure. As buildings, houses, or other structures are destroyed, infrastructure such as sewage, drainage, electricity, and water remain intact. Permanent effects affect real estate or type of infrastructure. If you buy a plot of land in an area where there are no utilities, drainage or cobbled streets, it is likely to cost less than a plot of land that has this infrastructure intact and developed.
Area preference reflects the choice of people in any given area. Most people usually talk about this when they talk about real estate like “location, location, location”. The location of the preferred area, for one reason or another, is what increases the value of homes. On the contrary, the location of the unconfirmed territory for any reason is the reason why the cost of houses is less. 8,000 square feet of new home on the coast of Long Island, East Hampton will cost much more because of their preference in the area, over an area of 1,200 square feet of home starter in the middle of Long Island, located next to the garbage dump.
The physical characteristics of the earth represent its indestructible nature, immobility and heterogeneity. Working in the opposite direction, we will start with heterogeneity. It simply indicates that there are no two parsels. The two parts of the earth may be very similar, but each individual parcel is different geographically, because each parcel is in a different place. This includes two lots next to each other. It is important to remember that the plots are created by dividing the land, since one large package of 20 acres is divided, each individual lot becomes its separate separate piece of land.
The earth cannot be moved, so it is motionless. Even when the earth is torn from the earth, a portion of the surface of the earth will always remain. Here it is important to note how this physical nature affects the legislation and real estate markets. The immovability of the land is the reason why the laws and real estate markets are local.
The inviolability of the earth simply means that it is solid and cannot be destroyed. It can be damaged by storms and other disasters, but it remains and changes the time of change and will always be there. This is the main reason why land is called a safe investment.
Thus, the main characteristics of real estate include deficit, land improvement, constancy, preference in the area, heterogeneity, indestructibility and immobility. Please note that there is a big difference between land and real estate. The earth is a part of the surface of the earth, the subsurface and the air above it. Real estate is all that is tied to the land. Therefore, when you are looking for investments, it is important to note the infrastructure of the area, neighborhoods and preferences of the area or ... location, location, location!
