Mortgage broker, John Kennedy discusses what Influences Property value

One man’s junk is another man’s treasure is a very applicable saying when it comes to real estate.  The dollar value you place on your home may be very different to a potential buyer.

Although emotions play a major role in the buying and selling of property; there are a number of undeniable factors that can give one property a valuable edge over another.

"Location. Location. Location."

It is quoted all the time because it is the key factor in property pricing.

Proximity to amenities, great schools, entertainment facilities, beaches or waterway, can all make a significant difference to a property’s value.

Other location factors include view, natural light and noise from local roads.

Size matters

The size of a property will usually impact its price, because the space determines how many buyer types, a property will appeal to.  Can a growing family see themselves living here or is it suited to just a couple?

Job opportunities

Is the location close to many and varied employment opportunities?

This can act as a drawcard for future buyers or if you are looking at investing it is important to secure a property that is located in an area where finding a tenant is easy.

Having a plan as to the purpose of your property is important.  If you are likely to move how “saleable” is the area you are looking at.  What is the suburbs potential for growth in job opportunities and/or transport to business districts?

Infrastructure activity

Keep a close eye on current and upcoming infrastructure activity in your target location. Developers behind these projects tend to do extensive research into the potential of the area, allowing you to piggyback off their insights. Infrastructure investments like transport, hospitals, educational institutions and retail shopping centres are all important ‘convenience’ factors which add to the price tag of properties.

Find out where the construction is likely to be and how it will impact on the property you are interested in purchasing.

Market pricing

The final factor to consider is the sale price of a similar property in the local area. Online property search websites can help you compare similar properties and give you a good idea of property values in certain areas.

If you’re ready to start the buying process, give John Kennedy, your local Gold Coast mortgage broker a call on 5559 2563. He can find the home loan that’s right for you and then do all the legwork for your loan so you can find the perfect place to call home.

 

Posted in: Property market

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