6 Surprising Things That Affect Property Prices
Buying the right property is about much more than finding a place with a view or purchasing in today’s trendiest suburb.
Many buyers and investors will be surprised to know that the following 6 factors also have a strong influence on price.
1. A location in the right school catchment area
For family homes in particular, a location that sits within the enrolment boundary of a sought-after school can turn a standard property into a highly desirable option. Information about top-performing schools in a suburb or council area is usually publicly available, along with their catchment boundaries, so whether you’re looking to sell or buy it pays to take the time to find out which apply to your own home, or the property you’re looking to buy.
2. A parking space the neighbors envy
When focusing on the structural features and look of a home, parking is one of the features buyers can overlook. But homes that offer a dedicated off-street parking space on title will usually outperform similar properties where owners have to hunt for a spot at the end of each day.
3. Proximity to transport hubs
A commuter’s response to a property’s location says a lot about it’s potential value. Even in suburbs further away from the CBD or other employment centres, a quick walk to the train station or access to multiple public transport options will often make a huge impact on price when it comes to sale time.
4. Unique or classic features
The property you’re considering may not be the most attractive in the street, but if it offers architectural features that make it stand out from other homes in the area, or a look that represents a particular time period in the suburb’s history, this will often increase the amount buyers are willing to pay.
5. Demographic trends in the local area
Knowing that an area is popular with buyers is one thing, but understanding how demographic changes are affecting property prices involves looking at wider trends. For a range of reasons a particular suburb may start to become popular with older buyers planning to downsize, which could drive up the price of apartments. Meanwhile a change in government policy could make buying more difficult for investors, making family homes more accessible to first-time buyers elsewhere.
6. Upcoming infrastructure developments
Along with demographic changes, developments such as road and rail improvements, upgrades to schools and hospitals and even the addition of new shopping centres, parks and green spaces can all increase property values. Knowing if and when these changes are likely to take place is usually a matter of researching local council information, which will list planned developments over the next few years.
Understanding how these less obvious factors can influence property prices is worthwhile all for all buyers seeking long-term capital growth, but also for sellers looking to keep an eye on market values.