If you are into real estate, for sure you have heard of the clichés in the industry which may actually be true no matter how overused they may sound. So, we will look into some real estate clichés and how these could be considered true.
1. The value is in the land not the dwelling. We have to face the fact that the value of a building is declining but the value of a lot is increasing. Many presume that a building's estimated useful life is 50 years but according to Ernst & Young research document, it means that a building needs to be replaced after 50 years.
“This means that many investors with shun apartments in favor of houses, where the land to asset ratio is higher,” the document said.
2. Location is everything. Obviously it is. Say for instance, as the industry faced growth in Sydney and Melbourne, in other capital cities, the growth has declined. Even in a certain area, growth may also vary from suburb to suburb and from region to region. When it comes to a home or even for a commercial space, location is very critical.
3. The worst house in the best street. Speaking of location, you may change the look of a house but you can never change where it is. So, if you can see a dilapidated house in a great street, it can still be a good option because you can merely renovate the house and you can get all the benefits of a good location not just now but in the future. By the time you finish renovating your house, it will become the best house in the best street, according to Street Directory.
4. Million-dollar views. The view around the home is also of great value. That is why there are homes that cost a lot when they are facing a panoramic view if there is an iconic feature near it. Aside from giving you a lovely view while you are living in it, this may also increase your chances of selling it.
For instance, a mere 30-square-meter studio is sold for $700,000 which is one of the priciest in the area per square meter because of its views of the Harbour Bridge and Walsh Bay. In Kirribilli Avenue, Kirribilli of Sydney, some buyers will purchase multi-million dollar homes because of its views, Domain wrote.
5. Time in the market, not timing the market. This will remind us that one needs to look into the time in the market that builds returns and not the market timing. That is why an investor needs to be wary about buying too high during a boom especially that the real estate market is hard to predict.
