Many consider the location of a property has the greatest impact on its value. After all, whenever a person thinks about real estate the first thing to come to mind is the old saying: “location, location, location”
Before a person begins to look for property to purchase the first thing, they often decide on is location. Each person will consider many different aspects of a location before they start to look for any property. At the end of the day property is one of the biggest assets you will own. Seeking advice for any property related queries is best received by the professionals and we recommended a qualified highly experienced valuations company to get you on the right path.
A valuer may determine the value of the property but at the end of the day, the value of the property is the price a buyer is willing to pay for the property and what a seller is willing to accept. If the location of the property is attractive to a buyer, they may be willing to pay more.
The following are such considerations, and they will display the effect of location on property value.
City/Suburb: This is where many start before looking into buying any property. You might already have a list of suburbs or cities where you would like to live. This list could be based on familiarity, reputation or even the lifestyle the area promotes.
Supply and demand: As with any product, supply and demand will influence value. It also creates a sense of urgency if supply is low, and demand is high. A person is more willing to pay a higher price for something they believe is limited.
Crime rates: If an area already has a bad reputation for having a lot of crime, the property within that area, even the surrounding areas, will have a low property value. No one will be willing to live in such a location unless the price was affordable.
Local amenities: People look for property in areas that has the amenities that suit their lifestyles. Someone who likes to take a walk in the park every morning will be looking for property within proximity of a similar park. Other amenities may include gyms, cafes, restaurants, markets etc.
Street type: The type of street does influence property value. Many will have a preference, but most will prefer the quiet of a cul-de-sac over the noise of a busy street. The type of street is reflected in its name. A road would have more traffic than a close or place which is what a potential buyer may consider when looking at a property’s address.
Transportation: Whether you travel by car or public transport, the property’s location should promote ease of travel. If a person commutes regularly to work or travels frequently, the access to the right roads, motorways, bus routes or train stations could be a deciding factor.
Schools: For growing families, a property’s proximity to schools is a major influence on whether it is even considered for purchase. Some parents look for homes that are within a close distance of a particular school. This may not always be a school the child already attends.
Development: Many first-home buyers will build their first home with plans to sell and upgrade later. When buying off the plan, consideration will have to be on the planned development of an area as this will greatly impact the property’s value in the future.
There are so many different ways the location of property influences its value. It is a key factor any prospective buyer will consider before they even begin to look at different properties. Before investing in a property consider how its location affects its value and how a property valuation company can find the perfect service required for your property related needs.
Tracy Waits is one of the leaders in Darwin property valuations with extensive experience across commercial and residential property valuations. Tracy is a registered Chartered Surveyor and has been working in the valuations industry landscape and has spoken at several conferences, often as a keynote speaker.