The worth of a home is more than just return on investment
HOMEFRONT Column by Victor Consunji, founder and CEO of Victor Consunji Development Corporation (VCDC)
Many of us get trapped into the thinking that the major significance of a home is its performance as an investment, dictated by metrics such as the location and square meterage, but that is only part of the equation. The common sayings “Buy land, they aren’t making anymore” and “everybody needs a place to live” are cliché because they are self-evidently true.
The recovery of real estate prices from the pandemic low has already been witnessed, and the presumption that prices will continue to make new highs over the longer term as economic growth returns is already a foregone conclusion. But, while my previous editorials have focused on economic trends and dissection opportunities in different market segments, I feel it’s important that we stop and really ask ourselves: “What is the true value of real estate?”
Real estate is more than just picking a good location, it’s more than being a product of design and construction with a certain floor space, and number of bed and bathrooms. Of course, these things matter to a degree, but when it comes to real estate it’s the whole that is greater than the sum of its parts. The real value of a home is how it empowers its residents to live the life they want to lead.
The true value in our homes is measured by how conducive the environment is in enabling us to fulfill our purposes in life. A home is supposed to be a place that facilitates families to live their own truths. Your permanent residence should be a place that offers effortless tranquility, that inspires and enables you to shape your reality the way you see fit.
We need a place that replenishes our energy after a day wrought with challenges, revitalizes us for tomorrow’s obstacles, and naturally assists us. Whether our life goals are to climb the corporate ladder, run our family businesses, or even focusing on raising our families, a home should be tailored to your needs and inherently dependable that you can almost take it for granted. From the purchase to turnover and over the longer term, your home should work to make everyday living effortless for you and your families.
To deliver this long-term value proposition, home builders are required to be more than just a company that builds homes. As developers, we strive to deliver intuitive utility and cohesive living experiences, where homeowners will innately appreciate how much they don’t have to concern themselves with the typical issues that owning a home usually entails.
In this day and age, no two family’s needs are exactly alike. In my opinion, the outdated idea of cookie cutter model homes, designed with “most families” in mind, that we eventually learn to live with is fundamentally backwards and simply cannot bring the long-term value we wish to provide to our clients.
For example, a home that is ideally suited for a family of multiple generations who have a family business would require a completely different space utilization as compared to a house built for a single generation family with a few kids, where the father works from home. From the number of the bedrooms to the size of the common areas and function rooms, what works for one family doesn’t necessarily work for another.
At VCDC, we employ a more bespoke approach, letting our clients choose from a variety of well thought out layouts for every floor of each model home we offer. Our clients can even work with our design team to come up with their own customization, although truth be told it’s rare that by combining our designs, we can’t build a home with the features they are looking for.
We take pride in the fact we’ve done the thinking for you, by going through the process to create each blueprint configuration, constantly adding new flavors, and optimizing them with every phase of each project we do. We’ve grown our project management and construction capabilities to allow us to construct highly customized homes at scale, without making the process too technical or onerous for the client.
While land typically appreciates in value, it’s understood that the building itself is a depreciating asset. But for a home to really deliver value over the longer term, using quality engineered building materials, modern structural engineering practices, and premium finishes ensures that your home is robust enough to last decades without any costly and disruptive repair and restorations.
Sustainability is a big part of our design philosophy, and it’s not only because of the impact on carbon footprint of the property. Anyone who’s had to change the flooring in their house knows how costly and inconvenient of a process that is, which is why we use carbonized bamboo in place of natural wood for our flooring that will stand up to the test of time.
We also have designed our foundations with the capacity for additional floors, should the owner decide that they need more space. Many of our models have the provisions to adapt from a bungalow to a two -tory home or from a two-story to a three-story with expanded outdoor roof deck. It’s by having this foresight and making the investments early on that allows our homes to truly grow to fit the evolving needs of our clients efficiently and with minimal hassle, even if the decision is made many years later.
When it comes to lowering the carbon footprint and long-term cost of the day-to-day ownership, we’ve designed our homes to allow natural light and airflow throughout. With the ever-increasing prices of electricity, we’ve added the ability to seamlessly integrate solar power generation so we can protect our clients against further price escalations. We’ve also made it so that the installation process is trouble-free, using only top tier equipment and experienced contractors to provide a system that is built to last.
In our increasingly digital world, the rise of video streaming platforms and working from home means that the latest fiber optic internet connection isn’t optional. Home automation systems offer energy savings and convenience, but the process needs to be intuitive so getting that benefit in your home won’t be a troublesome exercise in and of itself.
The amenities in a development also play a big role. Creating spaces in the community where a family wants to spend their time means that entertainment need not require travel, which in turn saves more time for more productive things. Especially in our suburban developments, our communities are master planned with all the necessities conveniently nearby. As an avid fitness enthusiast, I have often asked myself: What usefulness does a community fitness center even offer, if it’s not even a fully functional gym?
When we invest in a home, we need to avoid the speculation and focus on the real, long-term worth of the home. That value is more than just the capital appreciation, more than just a collection of metrics and sellable features and ticking the boxes.
A home demonstrates its real significance when it truly permits the homeowners to take full advantage of their lives, enabling them to fulfill their true purposes and express their true potential. At VCDC, a home’s ability to effortlessly cater to its owner’s needs will always be the measure of the value we’ve delivered and it’s what will really matter for years to come.