Factors That Affect the Value of Your Property (Part 2)
For the average individuals, a house may be the most significant investment, and it will either reward them or exist as a millstone around their necks. Various factors will influence the value of your house, whether it be capital appreciation, tenancy rate or rental yield. Here are a few points to consider:
1/ Pylon in the vicinity
Electrical pylons generate electromagnetic fields, which many believe is hazardous for health. Many kinds of research have been conducted to quantify and discover the possible damage to humans, but so far, there is no conclusive evidence.
According to EMF UK, exposure to magnetic fields higher than 400 n/T increases the risk of childhood Leukemia. The electric field is usually highest at the point of closest approach to the conductors and falls quite rapidly with distance.
The organisation said the electromagnetic radiation starts doing damage from the first exposure, even though there are no noticeable symptoms for a long while. As the exposure continues, the damage could be accumulating.
EMF UK claimed that powerlines could cause headaches, anxiety, cancer and insomnia. Disregarding the possible ill-effects of a pylon, house owners need to take the perception of their potential tenants or house buyers into consideration, assuming that they’re planning to sell it later or to rent out.
2/ Abandoned housing project
Abandoned housing projects with their crumbly foundations and mouldy, weather-beaten walls make for a terrible eyesore to the landscape. Their presence deducts favour points even from neighbouring developments. Further on, abandoned houses attract delinquents and criminals. To make matters worse, these houses are not easily demolished by the government as the legal proceedings can be tedious.
Despite the modernisation and technological advancement that we enjoy, the majority of the Malaysian community is not ready to shake off their superstitions and beliefs. The discounts given to properties adjacent to graveyards reflect that fear.
However, house buyers who believe that the dead are incapable of any form of harassment may consider buying such houses. Take note that such houses may be more difficult to sell in the future. Prospective tenants are also less likely to rent there, and if they do, they probably aren’t inclined to pay good money for it. The immaterial spirit invokes very material effects on your house.
4/ Proximity to industrial land
There is a reason why industrial lots are segregated far away from residential properties. Pollution and noise from manufacturing make for a terrible combination, both to the health and well being of residents living nearby. Even if your house is a distance away from such factories, toxic fumes may encroach upon the neighbourhood, product of wind movement. House buyers know this and try to be as far as possible away from industrial sites.
When buying a high-rise development, the collective attitude of the community staying within it needs to be taken into consideration. Since residential units in a high-rise development are integrated together, your neighbours’ degree of civic behaviour will affect your property.
This is clearly reflected in the secondary market, where poorly maintained developments lack a proper coat of paint, or the walls turned into involuntary juvenile art exhibitions called graffiti. However, it is not apparent in the primary market where the development is still under construction, and you are unable to evaluate your future neighbours’ behaviour.
A safety point to consider is to stay away from low-cost houses as this buyer category may not possess the necessary income to foot their maintenance bills. Developments attracting those from the mid-income level and above are usually better maintained.