Understanding Capital Gain in Real Estate Investment

If you are looking to make your first investment in Puerto Vallarta, Nuevo Vallarta, or its surroundings, you’ve likely heard the term "capital gain" quite a lot. If you’re still unsure about what this term means and how it affects or benefits your purchase, Gova is here to explain it in more detail.

Capital gain is the increase in the value of a property, whether it's a plot of land, an apartment, or a condominium. Typically, real estate values change over time, so it’s likely that if you decide to sell or even rent the property in the future, there will be a difference between the price you paid for it and the price at which you sell it.

There are certain factors to which you should pay particular attention, as these will determine the appreciation of your land or property. At Gova, we explain what these factors are.

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What factors influence the capital gain of a property?

The capital gain is a decisive factor that intervenes at the time of fixing the value of any property, it can be reflected in the increase of the value of a house at the time of making improvements or simply that it increases its value with the passage of time due to the place where it is located.

Some of the factors that influence are: location, accessibility and services, will increase the value of your home and here we will analyze them in more detail. 

Some of the factors that influence are: location, accessibility and services, will increase the value of your home and here we will analyze them in more detail. 

Key Factors Affecting Property Value

When choosing where to invest or live, there are several important factors that directly influence the appreciation of your property.

At Gova, we carefully consider these aspects in our developments to ensure your investment grows over time.

  • Roads of Communication One key element to consider is whether the area you choose to live in has excellent communication routes. This includes streets and avenues that allow for fast and safe travel, as well as the availability of public transportation systems. At Grupo Gova, we make sure our developments are located near major communication routes for your convenience.

  • Location Another factor that adds value to your property is its location within an area that offers a variety of services, both public and private. For instance, proximity to shopping centers, theaters, cinemas, schools, and workplaces can boost the property's value. However, if the area lacks basic services or is far from these amenities, the property's value may not increase or could even decrease. At Grupo Gova, we ensure our developments are located in prime areas with access to all the essential services, as seen in our Altea project.

  • Security Security is a critical aspect that directly influences the value of a property. Quiet and safe locations tend to have higher appreciation rates because they are in higher demand. All Grupo Gova developments are located in excellent areas and offer 24/7 protection and controlled access, so you and your family feel safe at all times.

  • Territorial View A property’s view plays a significant role in its value. Apartments and houses with panoramic views tend to be more sought after and are valued higher. On the other hand, properties with obstructed views could see a decline in their market value. At Grupo Gova, we don't just offer top-quality materials, recreational areas, and proximity to services, but we also provide stunning views. For example, from the terrace of Vitania, you can enjoy beautiful sunsets and even catch a glimpse of the ocean.

If you’ve already found the development that suits you, our team of specialists is here to support you throughout the process when you decide to invest in a property in Puerto Vallarta, Banderas Bay, or its surroundings.

We look forward to hearing from you!