If you’re buying a property as an investment, there are many factors to consider. The building’s age, condition and location are primary factors, alongside issues such as property taxes, accessibility and maintenance costs. However, the actual architecture of a building can also affect its value considerably, and it can impact its desirability to investors, renters and buyers down the line.
Current Trends
The value of a property can be greatly impacted by the degree to which it conforms to current architectural trends. Tastes change, and potential buyers will have a list of qualities they require in a property. For the majority, these requirements will be informed by contemporary thought on architectural design and home construction.
In terms of both aesthetics and physical livability, modern properties are generally considered more desirable than older buildings, so they add greater value to an investment portfolio. Modern architecture prioritizes sustainability and energy-efficient design. The use of eco-friendly materials and design choices, for instance in the construction of roofs and windows, will add value, as will structural factors that make it easy to regulate room temperature with a minimum of fuss and financial outlay.
Desirable Features
Solar panels and other forms of eco-aware energy generation can also be a plus, although this must be balanced against any aesthetic depreciation if an older property has been updated. Higher-end new-build properties frequently incorporate smart technology from the outset, with lighting, security, thermostats and even devices such as washing machines and entertainment systems fully connected and automated.
Aesthetically, open-plan layouts and minimalist design choices are presently popular, as tenants and owners enjoy the sense of space, light, freedom and potential these features provide. Of course, older properties that represent excellent examples of past architectural styles will always be in demand, even if they represent a more niche market. Just as modern tastes are constantly moving forward, fashions can change in terms of which architectural periods are currently in vogue.
Nevertheless, a well-preserved heritage property in good condition will always attract interest and add value to a portfolio. If the building is of historical significance due to unique architectural features, it will be all the more desirable, and care should be taken to preserve these features and to present them in the best possible light.
Fitting In
It’s a truism about property that it’s all about location, a sentiment surely shared by Chuck Roberts of Stifel, Nicolaus & Company who recently bought a luxurious waterfront mansion in Miami for a record-breaking price. However, in addition to the obvious plus factors like breathtaking views, privacy and proximity to amenities, having the right architectural style for a given location is also something to consider.
Whether the property is in an isolated rural location or a sought-after urban neighborhood, it’s important that it doesn’t detract from the existing character of the place. Ideally it should enhance that character, pushing in the same direction as the factors that give an area its charm and identity, rather than pulling against them. If the property stands out then it should be in a positive, respectful way that adds something to the overall feel of an area.
Understanding context
Historic, cultural and natural context can determine why certain architectural styles are more desirable than others for different locations. Thorough research in these fields can help to determine what is appropriate. A property needs to be right for a particular environment, and it’s recommended to view it at different types of day and in different seasons to see how it works with the skyline, surrounding views and alongside other properties.
Certain design choices and color schemes may be inappropriate in some cases even if they might work well elsewhere. These features can lower the value not just of the property in question but of neighboring properties as well, leading to negative feelings in the local community and from other investors.
Investment Potential
When you’re investing in a property you should consider its long-term value. This is especially important if you spend a considerable amount of money on the property after its initial purchase. You’ll want to be sure that you can recoup this expense in the future.
One way to offset these costs quickly is to rent out your property. If renting is the primary purpose of your investment, then you need to make sure it’s in a safe, desirable neighborhood with good amenities and that this is not likely to change during the period of your investment. Keep an eye out for any planning applications that may adversely affect value, such as for a nearby waste dump or new incinerator.
All these factors, from architectural trends to long-term value, should inform your strategy when building a property portfolio. A mix of modern properties and heritage buildings of historic significance can enhance your overall holdings and prove valuable assets for many years to come.
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