VALUES

Property Size

Price per square metre – the total sales price divided by the property’s area – is a market value indicator. Generally speaking, the greater the amount of usable space, the more valuable the property is. Garages, dedicated storage areas, pools, backyards, air-conditioning, patios, balconies and various other features can also positively influence a property’s value.

Age And Condition

You can generally expect that a property in good condition would be worth more than one in poor condition and in need of major renovations or repairs, given that size and other factors are all equal.

Demographics

Demographics is statistical data relating to the population and particular groups within it. It’s a valuable piece of the property puzzle for those looking for buy or invest and can have a significant influence on a property’s value. For example, if you live in a family-dominated suburb, the more expensive properties are likely to be three and four-bedroom homes while in CBD areas they may be the one and twobedroom apartments, which could be in high demand for student and office professionals.

School Zones

People will often pay a significant premium to be located within preferred, well-rated primary and secondary school zones. With state school zoning, in most Australian jurisdictions, students who live inside the zone must be accepted into the school (although special grounds may apply for those from outside the boundaries). With private schooling costs as they are and top-performing public schools in high demand, many parents will choose to spend to have an address that guarantees entry to their chosen school.

RENOVATION AND/OR INVESTMENT POTENTIAL

This is a tricky one. A quality renovation might equate to a higher sale price but a poor job will not. Some buyers may prefer blocks that allow for additions like a pool, a deck or an extension to the house itself. If a home can be renovated to add value and later sell, then that becomes attractive to investors.

Planning And Building Regulations

Renovations or additions can require building regulations and planning permission and failure to adhere to these could mean the work being demolished. Some building regulations and zoning can have an impact on a property’s value.

Street Appeal

Streets that boast magnificent views in highprofile areas may fetch a premium but properties on tree-lined, well-maintained streets with low noise are also well valued. Trees may also be considered a feature when it comes to selling your home. Research in the past concluded that a ‘broad-leafed tree located on a street verge’ increased the price by about $16,889.

Interest Rates

The elephant in the room! Increasing interest rates can equate to hundreds of dollars extra in monthly mortgage repayments. The result might be downwards pressure on property values. Or, decent interest rate cuts can entice buying, increase demand and push prices up.

Last Word

When it comes to investing in property, to live in or to rent, a lot of knowledge and advice can be gained from the experts as well as family and friends. Look for the right location, with quality neighbours.

Lifestyle precincts, employment hubs and school catchments remain good indicators, but remember to look for areas and properties where future buyers or tenants will want to live. The right location with the best demographic will attract the quality tenant or desirable buyer.