11 factors that affect the value of your property


Whether you’re a home buyer or an investor, when you’re looking for a new property there are so many things to consider.

Determining the best property to buy isn’t as easy as picking the nicest-looking house in your local area.

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From location to school zones, demographics, and even the number on the mailbox, there are many factors that affect what a property is worth.

Here are 11 factors that can push values up, or down.

1. Location

As I often say, location does 80% of the heavy lifting of a property’s capital growth.

After all, not all suburbs are created equal.

It seems that in our new “Covid Normal” world, people love the thought that most of the things needed for a good life are within a 20-minute public transport trip, bike ride or walk from home.

Things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs.

Now, the ability to work, live and play all within 20 minutes reach is the new gold standard desirable lifestyle.

Some suburbs will always be more popular than others, some areas will have more scarcity than others and over time some land will increase in value more than others.

That’s why it’s important to buy your investment property in a suburb that is dominated by more homeowners, rather than a suburb where tenants predominate.

And you’ll find suburbs where more affluent owners live will outperform the cheaper outer suburbs where wage growth is likely to stagnate moving forward.

In general, the more established suburbs with better infrastructure, shopping, and amenities tend to be close to the CBD and the water and that’s where the wealthy want to and can afford to live, and they’re prepared to pay a premium to live there.

The rich don’t like to commute.

Overall, by focussing your research on what those often overlooked owner-occupiers are doing, you may just find an investment that outperforms the market and delivers strong value and growth over the long term.

2. School zones

The location, amenities, and transport are important factors that affect a property’s value.

But, did you know that state school zoning can also have a huge impact on local property prices?

That’s because some people are willing to pay a significant premium to be located within some well-rated primary and secondary school zones.

Students who live inside the zone must be accepted into the school, and while parents can apply from outside the boundary on special grounds (such as having siblings at the school, or access to a certain sport, language or program not available at other schools) there’s every chance they’ll be knocked back.

Competition for places in preferred school zones has pushed property prices sky-high.

And with elite private schools around the country costing parents up to (or in excess of) $41,000 per year, per child, it’s understandable that top-performing public schools are in high demand.

In fact, recent Domain data shows that property prices in some school catchment areas jumped as much as 45% in 2021 as many parents are willing to fork out hundreds of thousands of dollars to lock down an address that guarantees their child entry to their chosen school.

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3. Demographics

The population and demographics of a suburb have a significant influence on a property’s value.

For example, if you live in a family-dominated suburb, three and four-bedroom homes will be more expensive.

While in CBD areas, one and two-bedroom apartments will be more in demand from workers and students.

4. Street appeal

Did you know that street appeal can positively impact the value of your property?

It’s obvious that streets with extravagant views in high-profile areas create a certain type of premium.

But properties on streets with low noise, trees, and maintenance also tend to fetch a premium.

Popular streets are often quiet, away from busy roads, railway lines, flight paths, and other negative features.

They’re tidy, clean, and well-maintained streets with good condition paths and roads also make the street far more sought after.

In fact, research into the effect of street trees on property value found that tree-lined streets increased median property prices by up to $16,889.


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