When determining which property to purchase, there are many things to consider. Unfortunately, it’s not as easy as picking the nicest-looking house on the street.
From location to school zones, many factors affect what is and potentially will be property worth. To help, we’ve identified the five most important updated factors that can push property values up or down in the current climate.
This may come as no surprise, but it is a property factor that rarely changes. Location always does the heavy lifting when it comes to capital growth, and there are some “Covid Normal” considerations to be made when purchasing a property these days.
People are trading convenience for space, making outer suburbs a popular buy, but no matter what happens in society, some suburbs will always be more popular than others, meaning the land will increase in value more than others.
Buying an investment property in a suburb dominated by more homeowners means your property will likely outperform the outer suburbs, where wage growth may stagnate. So focus your research on what often overlooked owner-occupiers are doing.
State school zoning significantly impacts local property prices because people are willing to pay to be located within well-rated primary school zones. The competition for properties in preferred school zones is significant as many parents are willing to pay a premium for an address that guarantees entry to their school of choice.
First impressions are important, and street appeal can have a significantly positive impact on the value of a property. Streets with great views in high profile create a premium, but other factors such as low noise, trees, and well-kept maintenance can also be desirable, pushing prices up.
The most popular streets are often quiet, away from main roads to make entry and exit easier (especially when it comes to furniture removals), public transport, flight paths, and anything else that could be considered a discomfort. However, clean, well-maintained streets with plenty of walking and bike paths or roads in good condition can make the street more sought after.
The property itself is obviously a significant factor when it comes to value, and one of the main metrics here is size. A primary indicator for market value is the cost per square meter, with the total sales price often divided by the property’s area to determine value and worth.
The bigger the property you are considering, the more valuable it is, but you may also be somewhat surprised to learn that usable space is a sub-metric that affects value. That’s right, the function is important! A large property with lots of unusable space is a negative. People want storage space, well-laid-out rooms where every inch can be used. Large outdoor areas are pointless if they are on too much of a slope, just as big rooms that have too many corners or sections that won’t comfortably fit furniture can be pointless.
Recently renovated properties sell at a higher price, but the scope for potential further improvement can also increase a property’s value. For example, properties with a larger land size that may be able to fit a swimming pool or deck can encourage higher prices.
Property renovation does, however, require building regulations and planning permission. So be sure to take these regulations into account before purchasing a property. If these will make it difficult to renovate, this can impact the property’s value.
Do your research and steer clear of the number 13
We’ll end with the slightly humorous fact that the number 13 can negatively impact your potential property’s value. That’s right; there are buyers out there who will avoid purchasing a property that holds the number 13 due to superstitious bad luck!
On the flip side, the numbers 8, 6, and 9 are lucky in Chinese culture, meaning wealth, good fortune, and prosperity. Do with this info what your will, but we strongly recommend in-depth research across a range of factors before any property purchase. It’s one of the largest things you’ll ever buy, after all!