If you’re gearing up to sell your home, you’re probably wondering, ‘What factors affect property value’? While you probably already know that factors like land size, location, and the state of the property market have a big impact on property values, you might be surprised to know that some fringe elements can increase or decrease the value of your bricks and mortar by tens of thousands of dollars.
So, what are some of those elements? Find out below.
1. Street (name) cred
What’s in a name? As it turns out, quite a lot. Research conducted by NeedaProperty.com found that homes on streets with rude-sounding names like Crotch Crescent, Turkey Cock Lane, Bell End and The Knob were worth 22% less on average than comparable streets. On the flipside, it seems there are bargains to be had for buyers who don’t mind a bit of innuendo.
2. School zones
Selling a home close to a high-performing school can give your property value a significant boost. Domain’s School Zones Report found that nationally, the top 10 growth rates around top schools were up between 18-41% in 2016. In the same period, Sydney’s house price growth as a whole was around 1.5% and Melbourne around 7.3%.
3. Your suburb’s track record
Owning property in a suburb with a high crime or unemployment rate doesn’t necessarily detract from your property’s value. However, if you live near the scene of a highly publicised crime, like a murder, the value of your property could fall by 3.9% in the year following the murder, according to a study by the University of Technology Sydney (UTS). In other words, it’s best to wait until the media frenzy subsided before putting your property on the market.
4. Money does grow on trees
The effect of landscaping on property value has been documented, but did you know that living on a tree-lined street can also positively impact the value of your home? Research into the effect of street trees on property value found that trees on the street verge increases median property prices by about $16,889.
5. Public transport
Having good public transport services nearby can increase the value of your home thanks to heightened demand for connectivity and convenient commute times. On the other hand, living too close to public transport can actually decrease the value of your property. In London, for example, being within 500m of a Tube station can increase property values by 10.5%, but move 250m further down the road sees that figure drop to 7.6%.
6. “Bad” taste
Perceived “bad” taste can knock 5-10% off the value of your property, according to experts. So, while you might love that floral wallpaper or cork flooring, sticking to neutral interior design when selling your home is your best bet for securing a favourable sale price.
7. Storage space
Having a garage or a dedicated storage cage can add up to $8000 per square metre in value. This trend is even more pronounced for apartments, where space is limited and storage options are often few and far between.
In the UK, living near a high-end supermarket such as Waitrose can help add over £36,000 (AUD$64,477) to a property price typically – while living near any national supermarket may boost a home's value by around £22,000. Assuming these figures translate to the Australian market, living near a Coles or Woolies could do wonders for the value of your property.
9. The number 13
Superstition is the cause of bad luck for owners of house number 13. UK research reveals that owners of a number 13 property will sell for approximately £8,974 (AUD$16,072) less than their neighbours. Likewise, almost a third of buyers said they would try to avoid buying a property at number 13.
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