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Buying a house generally means that you are going to inhabit in it. However, with the rising prices of real estate in almost all major towns, buying a residential property has become a very good option for a safe investment as well. A major reason for this price rise is constantly growing population and thus, a consistent increase in the demand for places to stay, while the available area of land is not really increasing. To many of the investors who are lured by the anticipated hike in the land prices, it might appear like one of the safest ways to earn handsome profits on their investments. However, reality is that rising prices of land do not guarantee a risk-free investment. Therefore, you always need to consider the following factors while considering an investment in the real estate:
Recession: In recent past, many properties in various countries witnessed a decline in the real estate prices. Whereas you can’t always predict the future of the national economy, you also can’t afford to ignore this factor.
Poor location: If the quality of life deteriorates at the location where your property is, the prices are also likely to fall down. For instance, if the criminal activities in that area increase due to any reasons, possibilities of having people come there to live will also decrease, impacting the real estate prices negatively.
Surroundings: Having some good utility places, such as markets, shops, malls, gardens etc. in your property’s surroundings generally increases its value. However, having noisy roads, rail tracks, fire stations etc. in your surroundings can negatively impact your property’s resale value.