Over the past few months, we have seen the price in property rise at an exceptional rate; in fact, in March, house prices rose at the fastest pace in over 32 years.

There are lots of factors which affect the market such as the economy, interest rates and access to finance. There is also a bit of supply and demand in the equation too.

This makes the ‘value of property’ difficult to define at times; ultimately everyone needs somewhere to live, but there are some key factors which will influence how many dollars people are willing to part with so they can own a particular property.

Location, location, location

This is probably one of the first tick boxes. Yes, people’s idea of the perfect place to live will differ – whilst a rural retreat is one person’s idea of heaven, the thought of living without basic amenities will be hell for many others.

So, what does make for a good location for a property to have value?

• A safe place to live

No-one wants to live in fear, so living in a safe area is a priority. What we have seen though, is how areas change; what were once considered rough areas in Newcastle, as more affluent people moved into the area and improved the properties, they have been transformed into desirable places to live, and hence the prices of properties have soared.

• Lifestyle choices

Generally, people want to live with their lifestyle choices nearby. This includes proximity to work and good schools, and easy access to shopping and community, recreational and entertainment facilities.

As a result, coastal, inner and middle suburbs are attractive areas. However, with working from home becoming the norm for many people, and outer suburbs offering more lifestyle choices, areas which were once a no-go, are increasingly becoming more attractive, and the increase in property prices is reflecting this.

• Infrastructure

Access to public transport, and freeways are also desirable aspects people are willing to pay for.

What about size?

It stands to reason, the larger the property, the more value it has.

But the value is relative to the location. A five bedroom house deep in the suburbs will obviously attract fewer dollars than a five bedroom house on the coast.

The changing face of fashionable properties

In the 70s, buyers would be quite happy to part with a fair few dollars for a property with dark tones, linoleum floors, concrete patios, exposed bricks and rough rock fire places – all the buyer needed to bring was the macrame and the fondue set!

Desirable attributes have changed a bit since then, but people are still willing to pay for unusual architectural features or for an older, well renovated character-filled house, despite the many new builds on the market.

That said, a slick modern apartment with a stylish finish, and a superb view will always attract the dollars.

Return on investment

Right now, we are living in very interesting times; the pandemic demonstrated just how quickly the stocks and shares market can crash, and other forms of investment such as cryptocurrency are unpredictable. Bricks and mortar have stood the test of time, and with low interest rates and government grants, they are increasingly becoming the investment of choice.

With over 45 years in the business, we know the market and have the experience to help you get the best from your asset. We’re always here for an informal chat to answer questions.

Find out more about our property management services, and what we can do for you by ringing 02 4954 8833, or send us an email to mail@apnewcastle.com.au You can also see us at our Cardiff office.