30 Nov 12 things to consider when purchasing property
There is no doubt that purchasing a property can be one of the most stressful times in your life. This can be an emotional time and there are a lot of factors to consider when choosing a property that will best suit your needs. So, to hopefully make the experience a little bit easier, we’ve put together a list of what makes a good property…
1. Location, Location, Location
The location of a property is the most obvious factor that determines what a property is worth. Is it close to the city centre? Is it in a sought-after waterfront location? Is it close to public transport, shops, schools and restaurants? People generally want to live close to where they work and where they enjoy their free time, so properties in employment and recreational hubs will be more expensive. Then there’s the fact that some suburbs simply have a better reputation than others due to factors such as low unemployment or crime rates. Two homes just streets apart can differ substantially in value simply due to different postcodes.
The more people who want to live in a particular suburb, the greater the demand for properties in that suburb. At the same time, the type of people living in the area will also influence property values. For example, if young families are the dominant demographic group in the area, multi-bedroom houses will be more sought-after than small apartments.
3. Size and facilities
The features and overall size of a property will also influence its worth. A four-bedroom house is likely to fetch more than a two-bedroom house in the same area, while features such as extra bathrooms, garages, swimming pools and outdoor entertaining areas can all have an impact on property values. In busy cities, the absence or abundance of parking opportunities is another critical factor, while the functionality of a home’s layout is always important.
The street appeal of a property should never be underestimated. First impressions are very important in real estate, so the way a house looks from the outside can instantly add or subtract tens of thousands of dollars from its value.
5. Investment Potential
The value of a property is also influenced by the potential it presents to investors. Factors such as the rental income an investor can expect from a property and the capital growth they will enjoy when they later sell the property all play their part.
What is the value of a view? This topic has always been subjective, with some claiming that the view affects between 5-8 percent of the purchase price while others say there is no premium for a view. Ultimately, when a valuer assesses your house, the view is considered in their overall report; whether it adds or decreases value, it is evident that the view will affect the price.
7. Vicinity to infrastructure
Choosing an area that has existing and well developed infrastructure is a key indicator that properties in that suburb will maintain their value and continue to attract buyers over the long term, whether purchased as an investment or as an owner occupier. Shopping centres, schools and public transport are important to ensure the continued growth of the value of the suburb. New or planned developments may take time but will drive growth/value in the area over the long term.
Development on the Sunshine Coast has taken off! Check out our recent article on the Sunshine Coast infrastructure boom.
8. Not flood prone
It is important to ensure that the area in which you are purchasing is not subject to flooding. There is a great tool that can be found on the Department of Natural Resources and Mines website called the FloodCheck Map. This tool is free, available for anybody to access and is relevant within the Queensland region. You will be able to view the likely extent of flood plains, historic flood lines dating back to 1893, including flood and cyclone imager for 2010-2011, data relating to drainage basins, river gauges and flood studies and flood simulations for selected towns.
If you are purchasing a property through a developer/builder it is wise to research their past projects as that will give you a good indication as to whether the expectations were met. Being comfortable with a company that also aligns with your values can be important in ensuring the whole process of purchasing a property is stress free and ultimately what you signed up for.
Mosaic, who are one of our build partners, live by the mantra ‘We deliver what we say we are going to deliver’
10. Not on a main road
Due to our hot climate in Australia, properties tend to be built more for ventilation than for noise suppression. A property on a main road can therefore be considerably noisy, while access to the property can be reduced especially during peak hour periods. These properties typically take longer to sell/rent out.
11. Well maintained
A well-maintained property retains value for longer and attracts better quality tenants. Investing in a new coat of paint or new carpets can produce a higher rental return and the potential for longer rental tenancies.
12. Tenant Quality
The quality of tenants can sometimes be hard to determine, as most vetting is done through a property management company. So good communication between you and your property manager is imperative. Studies have shown that having a pet friendly rental property can increase your rental potential and prolong tenancies in general, while properties with backyards are more attractive to families with small children. By understanding your rental market and target demographic, you can ensure that your property remains tenanted for longer periods of time.
Article originally published by Mosaic Property Group, one of DBA’s build partners. Used with permission.