Investing in the real estate sector is one of the best forms of business, although it involves a long-term commitment the value of the property over time increases due to different factors such as accessibility, location, environment, services and infrastructure, urban and architectural value, this we call surplus value.
Being this a phenomenon of the economy, it is tried to measure or dimension in several ways. In real estate matters, surplus value is manifested in an increase in the value of the property that is perceived at the time of purchase and sale and that develops in the complex processes of generating value of the market.
Factors that contribute to the increase in surplus value:
Now that it is clear what surplus value is in real estate, you can indicate the external factors that increase this value and improve the quality of life of those who live there, or the conditions of the land.
1. Location
This factor is essential because it determines the status of the property, and allows to establish a projection of the possible increase in surplus value.
Considering the type of place, the surrounding neighborhoods, the real estate projects that are being developed in the area and the services of the area, it is possible to glimpse the long-term increase that the property can have.
2. Public and private services
Public services refer to the urban infrastructure that supports the place such as electricity network, drainage, drinking water system, telephone and Internet, garbage collection, natural gas, among others.
These services benefit the inhabitants of the community, raise their quality of life and the level of the place.
Private services are those that give an additional contribution to this level and quality of life. This is where schools, shopping malls, hospitals, recreational centers such as cinemas, sports centers, theaters, parks and churches come in.
3. Communication channels
This implies the streets and avenues that are available for fast, varied and safe movement. It also includes the availability of public transport systems such as trucks, colectivos, taxis, metro, trolleybuses, etc.
4. Future developments
States have long-term urban development plans in which the growth of the city is planned. With them it is possible to know what will be the current land use, the types of housing and potential businesses that will be built.
You can also glimpse the possible roads that will be needed and, at the end, have a vision of the whole that the area will become. All this guarantees the surplus value of the place and, therefore, of the investment.
5. Property preservation
Despite the fact that the surplus value is related to external factors, it is important that the owner “collaborates” with him by keeping the property in good condition.
In the case of housing, general maintenance is always necessary. Being a land on which it is not intended to build in the short term, it implies keeping it clean without weeds and with the payment of taxes up to date.
6. Productive activities in the area
Observing in detail the type of establishments that are in the surroundings is important to determine the direction of growth of the area, and how this can affect the surplus value of your property.
7. Security
This factor directly influences its value, quieter places have a better surplus value, because they have greater demand.
This point is one of the main reasons to invest in Punta Cana, as it has high rates and therefore are the favorite destinations of nationals and foreigners to invest in the real estate sector.
