Valu­ing a neigh­bour

The dif­fer­ence be­tween good neigh­bours and bad neigh­bours can af­fect a home’s sale price by as much as 10 per cent

Weekend Gold Coast Bulletin - Property - - FRONT PAGE -

Neigh­bours, every­body needs good neigh­bours.

This catchy tune from the long-run­ning Aus­tralian soap opera Neigh­bours car­ries some se­ri­ous home truths when it comes to prop­erty own­er­ship.

While I am not sure if any­body has ever done de­tailed re­search into the im­pact of good and bad neigh­bours on prop­erty prices in Aus­tralia, from my many years of ex­pe­ri­ence sell­ing real es­tate I can con­fi­dently say it does.

And re­search that has been con­ducted in the United King­dom shows the dif­fer­ence be­tween good neigh­bours and bad neigh­bours af­fects a home’s sale price by as much as 10 per cent.

What ex­actly do I mean by bad neigh­bours? Well, in terms of prop­erty sales it nor­mally re­lates to the ap­pear­ance of the ad­join­ing prop­erty.

Un­tidy yards, over­grown grass, or dusty deserts cov­ered in car tracks, rust­ing car bod­ies and other forms of trash can re­ally put buy­ers off.

And there are the other is­sues such as dogs that never stop bark­ing, fleas in the back yard be­cause of the neigh­bour’s pets, and strange, per­ma­nent smells.

Then there are the less no­tice­able but eas­ily dis­cov­er­able is­sues in­clud­ing con­stant noisy par­ties, scream­ing matches, swear­ing, revving en­gines, dis­or­derly con­duct and just in­con­sid­er­ate be­hav­iour. All these fac­tors will re­duce in­ter­est from po­ten­tial buy­ers.

How­ever, bad neigh­bours can also cre­ate an op­por­tu­nity. On av­er­age, home­own­ers move ev­ery 10 years.

If you are will­ing to take a prop­erty punt, buy next door to a “bad neigh­bour” and wait for them to sell.

Then sit back and watch the value of your prop­erty surge. Happy house hunt­ing.

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