I read a very interesting article yesterday on Property Price Vs Desirability written by Paul Mahoney, Managing Director of Nova Financial.
The content made for very interesting reading and the topic caused quite the conversation between the DevDosh Ltd team on exactly makes a property desirable and would help the sale of such a property.
Paul made a great point when he said that value in investment is important and in the UK property investment market many properties are over-priced and others under-priced and it is crucial to know which is which (this itself caused a huge debate amongst the DevDosh Ltd team).
If we consider desirability for a brief moment this is such a personal preference that it would be extremely hard to quantify accurately. When purchasing a property there are some basics that we all want such as strong foundations, walls free of damp, a roof that does not leak is always a good start, all these requirements go without saying, beyond that it can vary dramatically.
Any property purchase is an investment so even though many people would not consider themselves as property investors, they actually are when they think about it logically.
Talking of logic, this is where desirability can become two sides of the same coin, some property investors buy on emotion and some will buy on logic or underlying tangible value.
People looking for that ideal family home will want the right amount of space, a fit for purpose garden and good schools within the area. They may picture themselves at the table at Christmas time, or inviting family and friends over for the obligatory summer barbecue, all this will be taken into account when making the property investment.
When we look at the buying of a property through the eyes of a logical property investor free from emotion the criteria they are looking for can shift immensely (they may also want all of the above requirements as well).
A property investor who has capital growth or rental yield as the driving force behind the purchase will always be looking at the bigger picture as to what will make the property more desirable in the future.
Infrastructure is a key consideration good local amenities, reliable and easy access transport links, how the local economy is performing, is there growth expected are all going to play their part in how much you sell your property for, whether that be days, months or years from now.
Finding somewhere that can provide all of the above is ideally what any property investor is looking for, but as Paul stated in his article “determining the price of a property isn’t an exact science, as even experienced surveyors generally determine property valuations based upon comparable sales in the area and a bit of good old-fashioned guess work”.
“When determining price, it is important to compare apples with apples. By that, I mean a brand-new property with all the latest bells and whistles, as well as the top of the range fixtures and fittings isn’t comparable to a 100-year-old property on the other side of town.”
It is all about finding the right balance depending on what you what the property for, but even if it is a family home you expect to stay in for the foreseeable future, you would still want to know that you have a good chance at some reasonable capital gains, or at least I think most people would.
If your property is a desirable property and is in a desirable location, it will rent and sell very easily, but as you can imagine this type of property investment often comes at a premium, than again most people accept you get what you pay for when it comes to property, like most things in life.
Property investment is a personal preference so what one person considers a good investment is not necessarily what another person considers a good investment (just like the Devdosh Ltd team) so it comes down to whatever floats your boat I suppose