Throughout Australia, many of those who want an additional source of income turn towards property investment. Although investing in property can be a dependable way to make money, much of your success depends on the type of property you choose. While you might pursue the right aesthetics and defining practical features, it’s easy to ignore certain factors that can affect a property’s attractiveness. This, in turn, can negatively affect its value and your ROI.
From employment opportunities through to street names, it’s the hidden details that might affect how popular your property is with prospective buyers or renters. Being aware and knowing more about these factors can help you make wiser investment decisions.
Job Market and Business Opportunities
When the job market is strong, the median value of property prices rises. For example, in areas where mining job prospects strengthened, median house prices more than doubled. In Perth, they grew by 151%, in Townsville they grew by 150%, and in Mackay, they grew by 170%.
Such significant median house value growth suggests that you need to research the job market in a certain location before making an investment decision. Prospective buyers and renters are likely to look towards areas where employment prospects are high, too, which means investing in the right area could leave you with a property that’s in demand.
The same can be said for business opportunities. Not only can a thriving business market increase demand for properties, it can also raise their value—both for residential and commercial spaces.
A Lack of Features to Maintain
When you want to broaden your property’s appeal, steer away from houses that require a lot of maintenance. Not everyone will want to pay for the upkeep of a pool or extensive landscaping. Similarly, you may find that not everyone wants a pond.
Instead of focusing on properties with expensive features, turn to those that have enough room for adding them in. By taking this approach, you’ll gain a property that acts as a blank canvas for buyers or renters who want to transform it into the home of their dreams.
Influx of Migrants
Australia’s buyer landscape is set to change dramatically between now and 2030. According to recent statistics, Melbourne’s population will reach 6.5 million within the next 11 years. Much of this growth will come from external migration, and the effects on property attractiveness are interesting.
To those who are migrating to Australia’s shores from Asia, new properties are more enticing than period housing. Therefore, if you want to capture the attention of the Asian migrant market, you may want to prioritise houses and apartments with modern features. If prioritising the Asian migrant market in urban settings is appealing, focus on local assets that they may find relevant and useful such as dependable public transportation options and access to public amenities.
According to this study, properties on streets with plenty of trees are worth almost $17,000 more than their counterparts on tree-less lanes. Although the study focused on Perth, there’s no reason why this couldn’t have the same effect elsewhere in Australia.
It’s important to note that the presence of trees on a property’s grounds doesn’t have the same impact, however. As such, if you’re seeking to leverage this effect, choose to invest in areas that look like leafy suburbs, with streets lined up with trees. It’s also important to note that the overall cleanliness, appearance, and safety of a particular area can have an effect on a property’s value.
Enticing Street Names
What’s in a name? A lot of property value, according to this research which revealed that houses on streets with particularly silly names were worth 20% less on average.
The results of the study suggest that you should also consider street names that sound enticing rather than those that are funny or embarrassing. Reassuringly, the research doesn’t allude to the idea that boring streets names could hamper your property’s resale value. So, you don’t need to worry if the property you’re looking at is located on a street with a name that doesn’t sound too whimsical.
Get the Help that You Need
When it comes to a property’s attractiveness, there are plenty of hidden factors that could influence it. Identifying them as you sift through the properties you’re interested in could result in stronger demand and better ROI in the long-term. Whether you plan to sell your investment property or you want to become a landlord, examining the smaller details will serve you well.
When it comes making financial decisions, it’s wise to seek expert help especially when in doubt. At Clever Finance Solutions, it’s our goal to provide you with guidance and support in your mission to achieve a more financially secure future. Whether it’s finding the best loan for buying your first home or giving you key advice on expanding your property investment portfolio, we’ll be with you in your journey towards your financial goals. If you want to know more about how we can help, you can arrange a no-obligation appointment with us here.