Buying real estate on loan: The situation as the most important characteristic for the valuation

Anyone who intends to buy a property, whether a condominium or a house, will surely hear again and again that one of the most important criteria is the location. But, what is a good location? Is the situation good if it appeals to you personally or are there other criteria for this?

Location and value retention

The better the location of a property, the more stable is the house or the condominium.

Not only for houses, but also for condominiums, the prices rise. Striking here is that new apartments mainly in touristy popular places and also in economically strong areas arise. In general, it can be said that the better the situation is, the more stable are the properties there; Houses as well as condominiums. But the prices for these are accordingly expensive. Accordingly, the real estate situation is the most important quality criterion, which not only determines the current price, but also about the further performance. After all, in contrast to the state of the property, its location can not be changed. While a refurbishment or renovation can significantly enhance a home or condominium, the situation is usually the same. Because of this, it is advisable to pay special attention to the situation.

Differentiation: macro and micro location

This is the environment of the property; in the narrower as well as in the broader sense.

It is generally differentiated between macro and micro-location. This is the spatial environment of the property, both in the narrower sense and in the broader sense. Makrolage stands for the country or the region or the city / district. On the other hand, micro location means the direct environmental character as well as the character of the property and its neighborhood. This includes, for example, the building and road situation. But also the direct environmental influences count here. That’s not all, because depending on the type of use and the different requirements, so-called soft and hard situation factors also exist for assessing a situation. The latter are quantifiable. This includes, for example, the distance to the nearest airport. On the other hand, the soft situation factors include various subjective assessments, such as the surrounding environment.

Macro location

Of crucial importance here is the future strength of the respective region.

Regarding the macro location, care is taken to ensure that the property in question is located in a future-oriented and economically strong area within Germany. Roughly speaking, these are metropolitan regions and cities, which are called the strongest economic areas. The prices for houses and condominiums are correspondingly expensive here. The future strength of the region in question is crucial for the macro-location.

micro location

The micro-location stands for your own personal wishes.

In the micro-situation, however, it looks very different. Here it depends entirely on the personal requirements, which are among other things also dependent on the respective age and marital status. For example, a single person often decides to live in a different location than a family with children, or a senior has different needs than a 20-year-old.

What is important to note?

What is important to note?

Before buying a home or condominium, there are some things to consider, such as distance to work.

In terms of the location of a property, should be considered before buying something. So first and foremost, it’s important to clarify for yourself where you personally feel most comfortable: in the mountains, in the lowlands or perhaps rather by the sea? Likewise, it should be considered whether in the case of a house one wishes a single position or whether houses may be in the immediate vicinity. While some people seek happiness in the countryside, others tend to feel comfortable in the city; so you should also weigh in this regard, what a person likes the most. However, the distance to the workplace must not be forgotten. This in turn is often associated with the existing infrastructure.

So it is important, for example, whether appropriate roads are available and public transport is easy to reach. But doctors, shops, the cultural offer and the like should be within reach. This, in turn, also applies to shopping, sports venues and cinemas. If there are children, of course, a kindergarten or a suitable school nearby is also essential. Here then usually a high value is placed on playgrounds, green areas, parks and the like.

Do not forget the environment

Do not forget the environment

Flooding, earthquakes, noise and wind direction are also crucial for the purchase of a property.

But that’s not all that makes the location of a house. So count here also various environmental criteria. If the property is near a body of water, then it may sometimes be expected to flood again. Within Germany, the various insurance companies have introduced a specific system that divides the flood plains in this country into various hazard classes. These start at zero and go up to the number four.

It is also important to think about earthquakes. What may sound unlikely at first may change, considering that there are noticeable earthquakes, for example in the area around Lake Constance, south of the city of Leipzig, near Cologne and along the Alpine chain.

Less considered, when buying a property, is usually the wind direction in which it lies. In this case, the wind direction can have a large share of a good or bad location.

For example, if the wind blows most of the day from a direction where there is a fish factory or a garbage dump, this certainly does not contribute to an excellent assessment of the location.

Equally important is the noise pollution, which, however, is subjectively perceived differently. However, noise such as from an airport, roads and the like is often considered very unpleasant.

In addition, in a direct vicinity of a wind farm, mobile radio antennas, power lines, a substation and a waste incineration not only a noise, but also an odor nuisance and possibly also various adverse health effects.

However, a bad location is also understood to be a close development as well as a property that is close to social hot spots.

Very important in all these points, however, are the personal preferences, wishes and aversions. For example, while a prospective borrower does not mind moving to one of the factories, another prospect may not even be able to see the flat in that neighborhood. In addition, banks tend to regard such neighbors as more of a “nuisance”, which means that the location of the property is often even significantly downgraded.