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Property values are cyclical and impacted by the broader economic climate, but what suburb and property features directly influence an individual property’s value?
As part of our ongoing research, we surveyed more than 2,000 Australians and asked them what suburb and property features they would pay more for.
We were interested to discover what actions people think would increase property value and what extra features they would be willing to pay more for. The results found that 56.6% of respondents believed a renovation is the most effective way of increasing the value of your home, and Australians are willing to pay more for a modern kitchen or extra outdoor space. Here are some of the key insights.
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It turns out the features you’re willing to pay more for in a home may change with your age. Baby Boomers tend to place more value on an additional bathroom or outdoor space such as a garden or yard. On the other hand, Generation X would pay more for a modern or updated kitchen.
|What extra property feature would you pay more for?||Overall preference|
|Garden / Yard||17%|
A pool was the most popular choice among Generation Y respondents, nearly 30% said they would pay more for a house with a pool. Interestingly, however, a previous survey that asked respondents to put a dollar price on how much more they would be willing to pay for a home with a pool showed that most people wouldn’t pay more at all, except for the younger Generation Y. This indicates that the actual dollar amount people were willing to pay extra for a property with a pool may not be as high as most people think. Thinking of renovating? Learn more about accessing your equity here.
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72% more women believe a modern kitchen added value to a property, nearly twice as many Aussie men than women favoured paying more for extra parking. Another point of difference was that 30% more women than men saw more value in paying for an additional bathroom.
Interestingly, when we posed the same question to New Zealanders, they were happy to reverse gender stereotypes as 20% more men than women would pay more for a modern kitchen, while women chose a swimming pool as their top choice.
When it came to geographic preferences 60% more South Australians would pay more for a property with a modern kitchen compared to New South Welshmen. Whereas 63% more Queenslanders compared to Western Australians considered a property with a garden or yard as having extra value.
It is always useful to know who your target market is and broadly what they value. This can help inform your decision when it comes to deciding on where to focus your renovations in order to get the highest return. It’s also useful to talk to local real estate agents to find out their thoughts on what features buyers in your specific area are willing to pay extra for.
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A huge 56.6% of Australians believe renovating is the best way to increase the value of a property, because it is widely considered the fastest way to boost a property’s value. While renovations can range from simple home improvements to major refurbishments and additions, such as adding another bedroom or level, it is important to consider the amount of money, time and effort you’re prepared to invest in a renovation, and which areas of your home would benefit most from an upgrade.
Renovators need to keep a close eye on their budget, some renovations may be very costly but fail to result in increased property value. This can create a situation where the cost of the property outweighs its market worth, also known as overcapitalisation. Our survey data has provided insights to help us understand what features the Australian public would be willing to pay more for when purchasing a property.
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