When buying or selling a home, understanding the factors that increase your property value is crucial. A common question in real estate is how much certain amenities are worth. For instance, how much of a premium should you expect to pay for a property with a north aspect? Or, how much is living next to a beautiful park worth in dollar terms? Let’s dive into the key amenities that can boost your property’s value and how much they might be worth.
Location and Position: The Ultimate Value Driver
The saying “location, location, location” is more than just a cliché—it’s the number one factor that increases your property value. Sought-after suburbs and streets within those areas are the primary drivers of demand and, consequently, value.
Currently, beachside and harbourside living are at the top of buyers’ wish lists. Since COVID-19, many people are working from home and have shifted their priorities towards lifestyle over proximity to the CBD. Living close to water is highly desirable among Australians, but convenience also plays a key role. Access to good schools, parks, and recreational amenities are just as important when it comes to boosting property value.
However, it’s not just about choosing the right suburb; the position within that suburb matters too. If you find yourself priced out of the best streets in a desirable suburb, consider looking at surrounding areas. It’s often better to buy the best position in a good suburb than to settle for a less desirable street in a great suburb. A prime location and position are truly priceless.
Aspect: Why North-Facing Properties Command a Premium
Aspect, or the direction a property faces, significantly impacts its value. Properties with a north-facing aspect are often more desirable and can outperform south-facing homes by 20-25% in value.
For houses, having a north aspect at the rear is ideal as it ensures that the main living areas and backyard receive plenty of natural light throughout the day. In apartments, the preference is for main indoor and outdoor living areas to face north, enhancing the living experience and boosting property value.
Infrastructure: How New Developments Boost Property Prices
Infrastructure is a powerful factor that increases your property value, particularly new roadways, tunnels, and rail links. These improvements can add up to 30% to home values in a short period, as they reduce commuting stress and time delays for local residents. The ease of access to work and amenities makes areas with good infrastructure highly sought after, driving up property prices.
Open Green Spaces: Adding Value Through Nature
As urban areas continue to develop, the importance of open green spaces has risen sharply. Public parks, leafy streetscapes, and green surroundings have become major lifestyle features, especially in medium-density and inner-city areas where private backyards are scarce.
Young families who might not afford homes with large backyards place a high value on proximity to local parks. Additionally, pleasant, leafy streetscapes are greatly appreciated in Australia, often adding up to 15% to home values. The more greenery, the more appealing—and valuable—a location becomes.
The Rise of Local Communities
In the post-COVID world, vibrant local communities and villages have become key factors that increase your property value. With more people working from home, there’s a growing desire for areas with strong community vibes, lively cafes, and unique shopping experiences.
Cafe culture, in particular, has become more attractive as a social hub where people meet friends, work remotely, or simply enjoy a sense of community. Popular cafes and charming retail villages with delis and boutiques often give a suburb its unique character and can add up to 10% to home values.
Putting It All Together: Estimating Property Value
Understanding the factors that increase your property value can help you make better buying and selling decisions. When evaluating a property, consider the value of these key amenities and how much of a premium they might add. Whether it’s the allure of a prime location, the benefits of a north-facing aspect, or the charm of a local village, each factor plays a role in determining the overall value of your property.
Use these estimates to guide your expectations on how much you should pay when buying a property and the premium you can expect when it’s time to sell. By focusing on these factors, you can make smarter real estate investments that pay off in the long run.
School Proximity: The Educational Edge in Real Estate
For families, proximity to reputable schools is a major factor that increases your property value. Properties located within the catchment areas of top-performing schools often command a significant premium, as parents are willing to pay more to ensure their children receive a quality education without the hassle of long commutes.
In some areas, homes near popular schools can see an increase in value of up to 20%. Even if you don’t have children, investing in a property near a sought-after school can be a smart financial move, as it broadens the potential buyer pool when you decide to sell.
Public Transport Access: The Convenience Factor
Easy access to public transport is another key that increases your property value. Whether it’s proximity to train stations, bus stops, or tram lines, properties with excellent public transport links are always in demand.
With increasing urban congestion and rising fuel costs, many buyers are prioritizing the convenience of public transport. Homes within walking distance to major transport hubs can command higher prices and sell faster than those without such access. This convenience factor can add as much as 10-15% to your property’s value, especially in larger cities where commuting time is a major concern.
Security and Safety: Peace of Mind for a Premium
Safety is a universal concern for homebuyers, and properties in secure, low-crime areas tend to be more valuable. Features such as gated communities, security systems, and well-lit streets can make a property more appealing, particularly to families and older buyers.
A reputation for safety not only boosts property value but also contributes to a sense of community well-being. Homes in safer neighborhoods often appreciate faster, as peace of mind is a priceless commodity for most buyers. Investing in or living in a safe area can add up to 5-10% to your property’s value.
Views: The Luxury of Scenery
Views are another highly desirable feature that can dramatically increase your property value. Whether it’s an ocean vista, a city skyline, or lush green surroundings, a good view is a premium feature that buyers are often willing to pay extra for.
Properties with stunning views can see a value increase of anywhere from 10% to over 50%, depending on the uniqueness and exclusivity of the view. Homes with water views, for instance, are particularly sought after and can significantly outpace the market in terms of appreciation.
Modern Amenities and Upgrades: Staying Current Pays Off
Modern amenities and home upgrades are also significant factors that increase your property value. Features like updated kitchens, modern bathrooms, energy-efficient windows, and smart home technology not only make a home more comfortable but also increase its market appeal.
In today’s real estate market, buyers are looking for move-in-ready homes that don’t require immediate renovations. Investing in these modern updates can boost your home’s value by 10-20%, depending on the extent and quality of the upgrades.
Curb Appeal: First Impressions Matter
Never underestimate the power of curb appeal. The exterior of your home is the first thing potential buyers see, and a well-maintained facade can significantly boost perceived value. Simple improvements like fresh paint, landscaping, and a welcoming entryway can make a huge difference.
Properties with strong curb appeal can sell faster and for more money than those that appear neglected. A beautiful front garden, neat pathways, and a well-kept exterior can add 5-10% to your property’s value, making it a worthwhile investment for sellers.
Energy Efficiency: The Green Factor
With growing awareness of environmental issues and rising utility costs, energy efficiency has become a key factor in property value. Homes with features like solar panels, double-glazed windows, and efficient heating and cooling systems are highly attractive to eco-conscious buyers.
Not only do these features reduce utility bills, but they also make homes more sustainable, which is a major selling point in today’s market. Properties with excellent energy ratings can see an increase in value of up to 10%, reflecting both savings on energy costs and a reduced environmental footprint.
Enhancing Your Property's Value with Key Amenities
Understanding the factors that increase your property value is essential whether you’re buying or selling a home. From prime locations and great views to modern upgrades and energy efficiency, each amenity adds a layer of desirability and financial value. By focusing on these key factors, you can make informed decisions that not only enhance your living experience but also maximize your investment’s potential.
When buying, keep an eye out for these amenities, as they can guide you towards properties that will hold or increase their value. When selling, consider investing in upgrades or emphasizing these features in your listing to attract more buyers and achieve a higher sale price.
FAQs
- What is the most important factor that increases property value?
Location is typically the most important factor, as properties in sought-after areas with good amenities, schools, and transport links tend to appreciate more in value. - How much can a north-facing property add to the value?
A north-facing property can outperform a south-facing one by 20-25%, thanks to better natural light and energy efficiency. - Do green spaces really impact property values?
Yes, properties near parks and green spaces can see a value increase of up to 15%, as these areas offer recreational opportunities and enhance the aesthetic appeal of a neighborhood. - How do modern amenities affect property value?
Modern amenities like updated kitchens, bathrooms, and smart home features can increase a property’s value by 10-20%, making it more attractive to buyers. - Is investing in energy efficiency worth it for increasing property value?
Absolutely. Energy-efficient features not only reduce utility costs but also add up to 10% to property values due to their appeal to eco-conscious buyers.
About the Author : Carol Jain is a Buyers Agent at Ambyy Buyers Agency in Sydney. She has experience in buying residential, investment and commercial properties in Australia for her domestic and international clients . If you have a very specific question about buying residential, investment or commercial property in Australia, you can connect with her directly at [email protected].
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