One of the biggest contributors to the long-term value of your property is location and local infrastructure.
Areas where governments are investing in trains and schools quickly begin to contribute to higher local prices.
A recent survey from the industry researcher Cotality (formerly CoreLogic) outlined how buyers were paying six-figure premiums to live in suburbs that were in the catchment areas of some of Australia’s leading public and private schools.
“Location, location, location” is one of those cliche phrases used in real estate to help determine value and sell a property to a particular market segment.
Young families, for example, are looking for amenities such as good transport and schools. The downsizer market is more interested in easy access to health services and local shopping.
Understanding which group of people will be most attracted to your home is a critical element in designing a marketing plan to maximise the value of your property.
Here are some features of a location that help determine a property’s value.
Education – Young families are attracted to areas with schools of high reputation. Together with the Cotality report already mentioned, the portal Domain has published research that suggests there is an average 10% premium for homes near good schools.
Employment – If your home is near a major facility, such as a university or hospital, then the value of the property will be bolstered when targeting specific market segments, such as hospital workers or university lecturers.
Transport – A balance needs to be struck between access to transport and having to tolerate its noise. For example, being on a train line is great, so long as the trains don’t wake you at 5am. However, easy commuting into CBDs – and for children getting to and from school – is a valuable feature of any home.
Parks and recreation – Easy access to local parks is a blessing if you have children, and also dogs. While there might not be a direct correlation to price performance, there’s no doubt that a neighbourhood with these facilities attracts buyers. Features such as bike and running paths, and dog-friendly parkland all contribute to your home’s value.
Walking – People love to walk around their neighbourhoods, especially if it’s possible to enjoy easy access to local shops and local cafes and restaurants. A site called walkscore.com will rate the walkability of your area.
Waterviews – More nature than infrastructure, waterviews are one of the most prized assets of a house or apartment. Waterviews can add hundreds of thousands of dollars to the value depending on whether you have an outlook to the ocean, river or lake.