How lo­ca­tion can af­fect the value of your property

Whitsunday Times - - DOMAIN -

FROM the myr­iad of fac­tors that de­ter­mine a property’s po­ten­tial value, lo­ca­tion – and specif­i­cally prox­im­ity to com­mu­nity ser­vices, and avail­abil­ity of fa­cil­i­ties and in­fra­struc­ture – seems to hold firm as the peren­nial key to fu­ture cap­i­tal growth, ac­cord­ing to the Real Es­tate In­sti­tute of Queens­land (REIQ).

REIQ man­ag­ing di­rec­tor Dan Molloy said that schools, shop­ping cen­tres, pub­lic trans­port, parks and, in­creas­ingly, cafes and restaurants, are all de­sir­able as­pects of sub­ur­ban liv­ing and favourable at­tributes to po­ten­tial buy­ers.

“From most buy­ers’ view­point, the re­ally im­por­tant fea­tures for the lo­ca­tion of their home are that the neigh­bour­hood is safe, close to schools, med­i­cal ser­vices and shops, and also close to their workplace or to re­li­able pub­lic trans­port,” Mr Molloy said.

“The aes­thetic char­ac­ter­is­tics of a sub­urb or street also rank high on most home­buy­ers’ list of de­sir­able fea­tures.

“Leafy tree-lined streets and parks, as well as tidy well-groomed gar­dens, all pro­vide a de­sir­able am­bi­ence that ben­e­fits the fu­ture of a property’s price growth po­ten­tial.

“Many buy­ers may be will­ing to pay more for prop­er­ties in met­ro­pol­i­tan ar­eas where ad­ja­cent park­lands pro­vide an at­trac­tive out­look.

“Con­versely, buy­ing res­i­den­tial property in in­dus­trial ar­eas, near air­ports or busy main roads can of­ten turn buy­ers off and equate to lower than aver­age growth in cap­i­tal value.”

The REIQ be­lieves that while there are ob­vi­ous down­sides to buy­ing a home on a main road, such as noisy traf­fic, pol­lu­tion and road safety con­cerns, the upside is that these prop­er­ties are com­par­a­tively af­ford­able.

“Quite of­ten we see first-time home buy­ers pur­chas­ing homes on main roads so they can get into the mar­ket at a rea­son­able price,” Mr Molloy said.

“An­other po­ten­tial pos­i­tive about buy­ing on a main road is that you have more chance of hav­ing it re­zoned, which may be ben­e­fi­cial if you wish to al­ter the property for in­vest­ment op­por­tu­ni­ties.”

Ac­cord­ing to the REIQ, el­derly people or those who live alone of­ten pre­fer re­sid­ing on a main road be­cause they feel more se­cure with the ac­tiv­ity and noise around them.

“Beach­front, riverfront, canal front and lake­front prop­er­ties com­mand high prices be­cause they are a scarce com­mod­ity,” he said.

“El­e­va­tion and city views are prob­a­bly the sec­ond most highly sought af­ter property fea­ture in Bris­bane, be­hind river frontage.”

Anec­do­tal ev­i­dence sug­gests that the dif­fer­ence in price from one side of a street to the other can be 40 to 60 per cent or even more in some cases, if one side has views and the other does not.

“With the height of Bris­bane’s CBD in­creas­ing each year, city views are be­ing gained by more and more prop­er­ties,” Mr Molloy said.

“As de­mand is the key to fu­ture property price growth, it’s sen­si­ble and de­sir­able to keep these is­sues in mind when pur­chas­ing real es­tate.”

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