Property devaluation means a decrease in the monetary, and economic value of the property. There are many reasons behind the property devaluation in our country and sometimes it occurs due to owners’ minor mistakes and sometimes due to the economic conditions of Pakistan. Owners often devalue their property unintentionally by making wrong decisions and bear loss in real estate. They might wonder about causes of property devaluation and sill be confused about recognizing them. So, there is a comprehensive list highlighting the factors which devalue the property..
Cheap material used
Using a cheap material to lower the cost of construction will never maximize your profit or save you money. The cheap and low-standard building material starts to show itself within certain months. In case you have not found any buyers or tenants then you’ll have to remunerate the property before you find one and luckily if you get the tenants, they will leave your house. Using cheap material will damage the walls, paint, pipes, and structure of the property in many ways. It is the reason why your property gets devalued gradually over time.
The potential buyer first sees the neighborhood and environment around the society. Everyone needs a good and friendly society and community to live in. They will have to deal with this area for a very long time so it matters a lot. There are certain things the tenants or buyers don’t usually appreciate while they approach the property. They will not like noisy neighbors, landfills, polluted streets, crowded streets, street crime, nonavailability of markets or shops, and poor infrastructure. All these reasons are fair enough to reject a property.
Tenants are always conscious of the location because accessibility to educational institutes, offices, and main routes of the city makes the location a desirable and convenient place to live. But if the property is located in an abandoned area then its value automatically declines because of the inconveniences people living there face. On the other hand, the nonavailability of various facilities like worst infrastructure, poor water, electricity & gas supply, bad sewerage & waste disposal system, and no security affects the value of property badly. No one would prefer living in an area that lacks basic facilities and people never compromise their lives for them. The value of property stocks the investment of the seller or landlord which becomes a lifetime problem.
Too much Customization
If you have been living in a house and you have customized or designed the house just according to your taste then you should not expect to get a buyer or a tenant soon. It just means that you have to choose a tenant whose interior and exterior design tastes exactly match yours. That’s nearly impossible. It lowers the value of your property drastically because there would be many permanent changes in the house that do not suit every family’s size and nature. If you are trying to design the house the way you like then make sure that all the changes are reversible because the buyer comes with a huge list of changes too and too many changings would cost him a lot of time and money which he doesn’t want to spend usually.
Property interior and exterior
We have discussed many things earlier like location, facilities, and construction material. But now we are going to talk about the outer and inner looks of the property. The visibility of the house or building catches the immediate attention and decides the value of a property. So a modern and decent look helps people get clients. If the design is old-fashioned and needs to be updated every while then it doesn’t put a nice impression. The outer looks consist of a nice paint, main gate design, fence color and style, window frames, and glass color. The interior looks consist of spacious bathrooms, an American-style kitchen, a wide dining hall, a comfy living area, and cozy bedrooms.
The paint of a house may seem an insignificant factor in the devaluation of property. But you are wrong if you think this way. If the owner has used cheap quality paint that has to face its color and is peeling off the walls then the buyer suddenly assumes the quality of every facility available in the house. It is a major turn-off for every visitor and client. Also, the color of your building’s paint should not be odd because it doesn’t match the taste of anyone. Use while, light grey, cream or beige colors to paint your house as these are the simplest and attract clients.
The floor plan and elevation design of the property should be kept common and simple as we may expect any client to consider the property. If the floor plan and design are highly customized then the client will not be able to reverse it according to his family size and needs. It is a big no from any client and it decreases the value of property because of the rejection of design by clients one after another. A simple floor map of bedrooms, attached bathrooms, powder room, kitchen, living area, drawing room, garage, and store room, all being designed most simply to attract the clients.
If the building has any illegal renovation or additions by you or the previous owners then the new clients will be hesitant to buy it because they will have to bear the cost of it in the future. The location of your property must be in the vicinity of legalized land. If the property is located in the Illegal housing society or on illegally occupied land then it will have no resale value and you won’t find a buyer by any chance.
Lower standard plumbing and sewerage system
The plumbing system is the most important facility of the house or building. It decides the value of a property and people also tour a house along with a plumber to check the water disposal system, pipe fittings, water supply, taps, and other plumbing functions and fixtures. If there is pipe leakage, broken taps, and accessories, or rusted and decayed pipes then the clients are likely to say no to your property. So, first, make sure to repair all these damages and install quality plumbing equipment to avoid any problems in the future.
If you are planning to sell or rent out the property then first evaluate its value. Because the owners sometimes unintentionally become the reason for their property’s devaluation. Many factors which seem invisible count as a bad impression and discourage clients to consider your property. We have mentioned the factors which devalue the property to help you out and reconsider them while you decide to find the potential buyer or tenants.