As investors, we often find ourselves in situations where we need to make a judgment call about a property’s value. Of course, there is no definitive way to determine exactly how much a piece of real estate is “worth”: it’s not like a car in the sense that a certain make, model and condition equals a certain value.
In saying that, there are certain characteristics you can use to help determine a property’s true wealth.
This can be particularly valuable when you’re trying to decide between two properties.
If both properties are similar and they’re both priced in the same range – say, within $10,000 of each other – then a little more research needs to be undertaken in order to make a decision.
There are certain factors you can consider when evaluating which property is the better choice:Position and aspect
Is one property facing north? Is one on a corner? Are either properties located in a quiet cul-de-sac or on a busy main street? Any and all of these can impact a home’s appeal and value.Quality
This includes both the quality of the fixtures and fittings, and the care that has been taken to make sure the maintenance has been kept up to date. If one property is going to need extra money spent on it in the near future for repairs and renovations then those costs should be included in your budget.Access to amenities
Is one a little closer to public transport than the other? This is especially important if you’re looking at investing in an apartment that doesn’t come with parking.Layout
Does one property have a slightly better layout than the other? Consider spaces, nooks and crannies that can be converted into storage or study areas, as these can improve the property’s appeal considerably.Neighbours
What are the adjacent properties like – including the homes located directly next door and within the same street? Even if your house is in perfect condition, if the street is full of dwellings that are unkempt and uncared for, it can detract from your property’s value.
These pointers don’t cover the full list, but they should help you when deciding which property has the edge!
Of course, if you have any questions or wish to discuss your options with a qualified, independent property advisor, we are only one phone call away on 1800 600 890.