The market within the market: what drives price?
Whether we are property investors, seeking our own home or renters curious about a good time to enter the market, we all watch the prices of property shift and change. But inside this market are several smaller sectors, which are essentially drivers that will make a property more appealing and fluctuate in value.
Here are some of those details that will drive up the price of your property, so that you can be assured of a positive return, should you need to sell.
You only get one chance to make a first impression and potential buyers want to be amazed the second they step over the curb. This means quality landscaping, well-manicured lawns, paths clear of weeds, algae, stains and cracks and a beautiful fence (preferably freshly painted).
All these renovations can be done fairly cheaply as a labour of love; a few weekends at Bunnings and rolling up the sleeves yourself should do the trick. It can make all the difference in attracting buyers ready to purchase at the level you are seeking.
The kitchen is the number one room in the house where you can add plenty of value to your property.
If this space is looking tired and dated, a renovation is going to make a huge difference and attract plenty of attention.
Open plan kitchens with floating islands are all the rage at the moment. This can cost you anywhere from $5000 to $25,000, depending on the materials and contractors used. These costs can be driven down by using prefab setups available at places like IKEA. It can also add enormous value to your home – as much as $60,000.
A growing population
Most buyers are looking for an area where the local population is large, or is going to grow in the near future.
This applies to both prospective home owners and investors. Homeowners want to know that the right amenities are going to be available and larger populations mean they are more likely to have everything they need at their fingertips.
Likewise, investors like large populations as they have a greater chance of getting a tenant.
Refreshing the growing nature of your area, the green spaces, parks, playgrounds, shopping centres, events and things to do as part of your marketing can help you achieve a greater price at sale.
Location, location, location
It is the classic slogan in real estate and it still rings true. Put simply, houses closer to major cities or bodies of water (preferably the ocean) are going to be worth more than properties that are further away. Ocean views usually mean big bucks, and people are typically happy to pay a premium price for them.
Installing more bathrooms
Like kitchens, bathrooms can be a great driver of price when they are properly renovated.
For those who already have modern bathrooms there is another alternative – more bathrooms. It seems we don’t like to share in Australia anymore either, with the average household now including two bathrooms on the property.
So, if you are currently only have one, adding an en suite or another entire bathroom can add enormous value.
Looking to find out more about property investment or your current value? Get in touch with Marc Woolfson on 0478 304 994.