Will my property increase in value?

This is sponsored content for Ballarat Real Estate.

Everyone who owns property has one burning question: will my house increase in value this year? Of course no one, not even the most experienced Ballarat real estate agent, can answer that question categorically.

But there are a number of factors that enable us to predict which areas are more likely than others to show an increase in median prices.

Location, one of the most crucial factors in a property purchase, is the most obvious. This can range from the street the property is in and its location in that street to the location of the suburb itself.

Factors such as its transport links, infrastructure such as schools and shopping will play a part. Changes in these can have a bearing on property prices and whether homes in an area increase in value.

For example the extension of a railway line or other improvements in public transport, zoning changes, the building of a new school or improvements to a shopping centre can all make a property more desirable to potential buyers.The state of the property market also has a bearing.

As the price of property in suburbs close to town has risen, buyers have looked further out and prices in those adjoining suburbs have risen. Competition impacts on property prices.

At a time when interest rates are low - and of course at present they are at an historic low - there's often more competition for homes, and buyers will often bid at higher levels for properties. But it is important to emphasise that buying property is a long-term investment.

While some people are lucky enough to buy and sell in a relatively short period and make money, REIV data shows that there are excellent capital gains to be made for those willing to hold a house in the longer term.

The best way to get an understanding of where your property might sit in the market is to ask your local expert real agent to provide you with an appraisal.

Ballarat real estate agents will generally provide these free of charge and you may be surprised by what your home is worth.

Improvements you have made or are considering to make to a property can also have a significant bearing on the current or potential value. Buyers often focus on key areas within a property such as kitchens and bathrooms for evidence of improvement and renovation.

Comfort enhancements such as good heating and cooling may also have an impact. It is always wise to get some advice on what works to undertake to prepare a property for sale.

If you own an investment property the value you can expect can often be linked to the level of rental return you are receiving.

Properties that are delivering strong returns will inevitably be attractive to potential buyers. Increases in rent which often result from a lack of supply of properties will positively impact on the value. A good solid lease with quality tenants will also help.

This is sponsored content for Ballarat Real Estate.