Neighbourhood value may be something you may think of, if only subconsciously. You may have a feeling or a thought about particularly suburbs or regions being more appealing or inviting than others.
There are several elements that may go into determining the nature of a neighbourhood value. Being more aware of these factors could be key to finding a place more suitable for you, identifying investment options, or even picking a place in an up and coming area.
Whilst you may not be thinking about having a family any time soon, school zones and local primary and high schools can have one of the biggest effects on neighbourhood values. Which school zone your house or neighbourhood falls within a certain catchment area, along with distance your home is to the school will play a major factor and can often increase the neighbourhood value.
This is important for both primary and high schools.
Parks and amenities
Australia is ever the outdoor nation, so proximity to a council park and recreational facilities can be a big plus. The value they offer neighbourhoods means the humble kids playground or cricket pitch are a great draw card.
Many newer developments include outdoor fitness areas, recreation centres, and communal amenities, increasing their attractiveness to owners and investors.
Great road access is a bit of a double edged sword. On one hand, areas with well-maintained roads are a win, however, the opposite could be said for noisy main roads and busy thoroughfares.
Access to public transport, whether buses, rail, or relevant ferries, can be a key determinant when it comes to neighbourhood value.
Work and play
Proximity to employment is important – long commutes may negatively impact a neighbourhood’s value. Meanwhile, great cafes, restaurants and other entertainment will make an area more accessible and attractive to potential buyers.
Before relocating or wanting to find out about safety initiatives in the area you are thinking of buying, the dark horse of neighbourhood values can be the negative impact if the neighbourhood has high crime rates. A low crime rate will make the neighbourhood more attractive and valuable, and may even impact the cost of insurance.
So, it all adds up to doing your research and understanding the area you’re interested in to live or invest.
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.