What do you think has the biggest impact on property prices?
If your answer is location you would be right – but did you know that there are a whole range of other factors, largely out of your control, that may also have a say?…some of which may surprise you.
Yes, even the name of your street can affect the value of a home. Research in the US by listings site Trulia found that the median price per square metre of homes correlated to the type of address.
The same study found that ‘Boulevard’ was the priciest, followed by ‘Place’, ‘Road’, ‘Terrace’ and ‘Court. Unfortunately if you live on a ‘Street’ they came up with the cheapest return, followed on by ‘Drive’ and ‘Avenue’.
The upshot is that if you live or own a property on a ‘Boulevard’, you can expect it to sell for 36 per cent more than a ‘Street’ address. Pretty easy money we think.
You don’t have to be a numerologist to know that the number 13 is considered unlucky in Western culture. Enough for architects to leave out the 13th floor. But what about other superstitions around numbers in our cultural melting pot?
If your house number is 8, your property will be looked upon favorably by anyone of Chinese extraction, where the numbered is associated with prosperity and luck. Less so for the number 4, which sounds similar to the Mandarin word for death. That is not to say you should despair if your property is any of these numbers.
Numbers are generally not a major factor and at the end of the day buyers are rational – if your property ticks all the obvious boxes – like location, price and features – it will get sold pretty quick.
Got rowdy or nuisance neighbours? It could be all night partying or a dog that likes to hear its bark, or someone who likes to use a power tool or lawn mower at unsociable hours. Then there are the compulsive hoarders with junk oozing out of their garden into yours.
The bottom line is that if they are a persistent problem they could be bad news for the value of your property. But if your property is in a friendly, compassionate street then rest assured, your home could well benefit from the community vibe.
It is no secret that most families want the best for their children, and top of the list for some is a top-notch education. No surprise then that suburbs near in-demand schools command higher prices than homes outside the catchment zone. While all the data points to a direct correlation between property price growth and in-demand school catchment areas, what is it actually worth?
According to a report by Domain, properties in a prime school catchment area can sell for up to 10-15 percent more.
The same report found that property price growth near top schools was significantly higher than the average growth rate of the city. Other sources report anywhere from a $50,000 to $150,000 premium for a home in an in-demand postcode.
If your property or home is near a major supermarket – Coles, Woolworths, IGA or Aldi – count yourself lucky. In the UK, studies have shown proximity to upmarket supermarket chains, such as M&S and Waitrose, can boost property prices by as much as 9 – 12 per cent respectively.
The real surprise is that budget friendly Aldi and Lidl gave property prices in the area a bigger boost – by an average of 15 per cent. With Lidl to launch in Australia very soon, it will be interesting to see if the German chain has the same impact on these shores.
Who wants to live next to a moving cloud of carbon monoxide, not to mention noise right? You would be correct in this assumption as a Canadian study found that road traffic noise had a ‘significant and consistent effect’. They even managed to quantify it to the decibel, with each rise worth approximately $340 per decibel in depreciation.
Even Feng Shui, the ancient Chinese study of balancing energy in a space, believes a property near a high incidence of traffic disperses qi, which means it (literally) drives away good energy.
It may seem obvious that a leafy, tree-lined street is a desirable location, but a study in the US found that suburbs with trees separating the road and the pavement outperformed those without any form of greenery. By how much we hear you ask? About $8k, which is not small change.
Time to call your local nursery, or at least get your local council to start greening your street, sorry, boulevard.
Have a great local pub, restaurant, food or farmer’s market nearby? Then you can be fairly certain that your property will be worth more than suburbs without such amenities.
We should clarify that it does, however, depend on what type of pub or restaurant it is. Your local sports bar that attracts 300 rowdy students every Saturday night does not quite fit the profile. Neither does a Hungry Jacks, but if you have a three hatted establishment just around the corner, it could add as much as 5 per cent to the value of your home.