How to understand the value of your property. There are many ways to determine the value of your property, but in this market insight we highlight three large factors that generally outweigh all other considerations.
Understanding the value of your property will make it easier to understand how you can add value to your investment property in the future.
There are three main ways to value of your property are as follows:
The land component:
The land component is a very influential factor when assessing the value of a property. In most cases, the land is more valuable when it has a built dwelling or home on it, but one important note to acknowledge, land is scarce. Once it is sold, it is off the market and unavailable, unless the owner of that land chooses to resell it. The value of land can vary greatly. Here are some of the factors that can change the value of the land.
- Location/suburb
- Size of the block
- Elevation
- Shape of the land
- Scope of the allotment
The bigger the land, doesn’t mean its valued higher than a smaller block, buy you do need to consider how you can use the land to its best advantage.
The build/house component:
The build component is also a contributing factor to assess the value of your property. As the home ages, it will slowly deteriorate and require regular maintenance and repairs. In time it will likely need some major home improvements or renovations. While there’s not much you can do about an aging home, you can implement a number of changes to enhance to home and potentially increase the value of the house.
- Update the front facade (exterior) by repainting, rendering, replacing gutters and facias and restoring the roof to name a few
- Update the landscaping by adding lower maintenance plants, replacing the driveway or fencing, re-turfing the grass or redesigning the layout to a modern look
- Update the interior by replacing the fixture and fittings, possibly remodelling the kitchen, replacing the flooring, window furnishings and improving the energy efficiency
- Home extensions may also be used. This is if the land is big enough and the council approve. It may be a new bedroom, it may be an additional bathroom or changing a single storey residence to a double level
- Updating bathrooms and kitchens can be the most ‘eye catching’ change to a home
If a home starts to look tired and out-of-date, this may reduce the value of your home. However on the flip side, there is a risk of over capitalising. This is an entire topic in itself, but certain upgrades may may a home better, it sometimes doesn’t reflect on the asking price when you sell it.
Amenities/fixtures & fittings:
The are a number of different internal and external things that can enhance the value of the property.
These are generic and may not be as effective in all locations, but some external amenities that may add value to your property are:
- Swimming pool
- High quality landscaping designs
- Spa
- Outdoor decking
- Alfresco
There are also a number of internal fixture and fittings that may add value to your property:
- European kitchen appliances
- Air-conditioning
- Stone benchtops
- Joinery cupboards
- Walk in pantry
These are just some examples that can add value.
Understanding the value of your property will allow you to make the most of your asset. For most, the property will be your most expensive asset. Not all properties where made equal, locations all differ in supply and demand, so its still critical to see advice beforehand.
What should I do?
There are many contributing factors and questions to ask. At Crest Property Investments we specialise in sourcing brand new and off the plan properties for buyers. We also do not charge fees to buyers! If you’d like to learn more, please feel free to contact us. We welcome the opportunity to help you make the best property decision.
Our YouTube channel and Market Insights are also a great place to gain more tips. They provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
May 2022
