What makes a property 'rare'
Anyone involved with property investing for any length of time will have a good grasp of finding rare property - and that often a property that is considered rare will yield a greater return than one that’s common. This blog will show you how to invest in a rare property.
Blogger: Sam Saggers, CEO, Positive Real Estate
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What makes a property rare? Consider the fact that property (like beauty) is often subjective; therefore no matter if you believe your property to be rare, if a potential buyer does not appreciate its unique character, you won’t gain a competitive edge against other properties.
The following aspects are just some features, which can be considered rare in terms of a property’s appeal.
Style or design period (e.g. Victorian, Art deco, Edwardian, 50s)
The notion of rarity when applied to period properties can be because of a number of factors ranging from the layout of the building, materials used, the architect who designed it or the occupant's wishes.
The location (e.g. seascape, mountain)
The less there is of something, the more valuable that “something” is. In this case, we’re talking about land. When there’s a smaller amount available, values will typically rise as more competition pushes prices upward. This kind of demand is seen in cities and along coastlines.
This is where the old real estate maxim, “location, location, location” comes into play. When a property is near a highly desirable location (e.g. a capital city), its values will typically be higher because of its location.
History (e.g. famous person or event)
A property which has been lived in by a celebrity or other famous person can be considered rare, as is property which has gained notoriety from a turbulent, often violent past.
Some individuals are willing to pay a good bit of money to maintain an exclusive lifestyle. Secured gates and access to shared facilities offer these individuals an opportunity to live very private lives, separated from their surroundings.
Ultimate Rare Properties
Castle, anyone? From European castles - hundreds of years old to ancient villas nestled among the cliffs, overlooking the Mediterranean, there are countless examples of properties deemed rare.
However, rarity without solid market drivers seldom delivers the best possible returns for property investors. The best indication of ‘rarity’ is usually if a property is one of a kind, or in huge demand but limited supply. Do your own research before you buy.
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