How location can affect the value of your property
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.”