The phrase “location, location, location” is commonly used in the real estate world, which refers to the fact that the price of the property is usually tied to its location.
Is where you buy more important than what you buy? Can a location make a difference in the property’s price?
Read on the find out how important location is in your purchasing decision.
The search for the perfect home or any potential property investment requires more time and effort to get your money’s worth. Doing tons of research and planning ahead of time can help you get things done, but there are more things you need to understand.
One of the few things you need to know is how the location can greatly affect the value of the property. It’s not just the number of bedrooms or how well constructed the property is. Location has become a big factor. In fact, there is a big chance that you can find very similar properties with a huge price difference.
Just recently, real estate agents in Melbourne made a quotation of the same house in different locations. The price difference is over $4.5 million.
In Victoria’s Frankston North, many home buyers would be prepared to pay around $250,000 – $300,000, especially if it is in good condition. Most of these potential buyers can be investors, looking to resell or rent it out. According to experts, the average selling time for a property like this in the suburb would be around two to three months.
The city of Frankston in Victoria Image Credit: Businessinfocus
Usually, the median house price in Franskton North can go up to $260,000. It would be a different story if this same house is in Mitcham (20km from the Melbourne CBD). According to experts, it can go somewhere between $800,000 to $900,000 and it’s an easy-sell.
The Mitcham house market is more active than Frankston North with 204 houses sold in the year. The median house price is around $700,000.
It’s another different story if the house is on the waterfront in Brighton, Victoria. Agents say it would be an easy sell for $5 million. The Brighton market is very diverse, but the waterfront is where people would really pay you. Brighton’s median house price is around $1,625,000.
Notice the price difference of the property for every location? If you are looking for a home or want to invest, your safe bet is to consult a trusted property manager. Observe the prices carefully and examine on how the prices increase or decrease.
Related: Essential Home Buying Tips