It is something we have heard a million times before regarding property – and for good reason. Choosing a good location to build (or buy) can make or break the success of your property purchase. The question is this – what exactly IS a good location? Here are my main criteria for choosing a good location to build.
An amenity is define as a desirable or useful feature or facility of a building or place. When we speak about property, amenities typically means things like Schools, Shopping Centres, Restaurants, Parks and alike. Having a house/block of land close to these features can dramatically effect the value.
2. Transport (public and roads)
The close proximity of public transport (trains and buses) is a massive benefit for potential tenants and owners. With traffic in most major cities only getting worse, the option to use public transport is very important, and often one of the main deciding factors. For those that drive, easy access to main arterial roads is of similar benefit.
3. Quiet Area
With more and more big developments happening these days, there is a lot to be said for finding blocks of land in a somewhat quiet area. This is in conflict somewhat to #1 and #2, however a good balance is important. Less direct traffic (both foot and vehicular) can be a factor that tips people one way or the other.
4. Developer/Quality of Development
When locating a new block of land, the developer (and quality of the development) can make all the difference. Look at things such as the amount of green space they have allocated (parks, trees), quality of the retaining walls and pathways, width of the roads, the type of curb they use (is it soft on tyres or not?) and availability of street parking. Look at the amount of owner occupied vs rental properties in the estate – this is actually a massive factor in the value of the area as owner occupiers typically take better care of their property than tenants. Look at the homes in the area and the covenant – have the developers made and effort to ensure both quality and variety in the area? Speak to the land seller and find out their plans for the area – future infrastructure and amenities, land releases, total development size, other developments in the area and anything else you can think of.
5. Detracting factors on specific blocks
There are a number of things that can impact the value perception of specific blocks of land. These include easements, overhead powerlines, electrical transformers, bushfire and acoustic requirements, environmental protection zones and many others. The general rule of thumb is to avoid these blocks where possible, however it is possible to get a good deal on these blocks offsetting the downside. Make sure you negotiate a good price for these blocks as the developer will typically be keen to move them off the stock list.
For advice feel free to contact Equity Build Homes.