What defines the value of a property?
THE true worth of a property can mean something different to everyone, especially when emotions are attached, but there still are a number of undeniable factors that can give one property a valuable edge over another, says Mortgage Choice..
Whether you’re looking to buy or sell a property, understanding how it might be priced could make or break your decision to act.
Location. Location. Location.
Proximity to amenities, a suburb’s reputation, its vibe and whether local features like parks are well kept by the locals and council, can all make a significant difference to a property’s value.
The size of a property will usually impact its price, because the space determines how many buyer types, such as families, a property will appeal to.
This is so important — employment opportunities in the area can act as a drawcard for future buyers.
Keep a close eye on current and upcoming infrastructure activity in your target location.
While residential construction is booming in some areas at the moment, as buyers take advantage of lower interest rates and apartment demand, it may not always be that way. It’s a good idea to assess how much new development is actually happening and whether it is focused on units or detached homes.
As we have seen in recent years, record low interest rates have driven up property prices in many popular areas. Conversely, when rates are high, property prices tend to suffer so you should think about how future changes to interest rates may impact the value of the property.
The final factor to consider is the sale price of a similar property in the local area.