Analyzing the physical attributes of a property takes a unique and in-depth understanding of what makes a property desirable, and more importantly what makes a property ‘work’. It is important to note that ‘value’ will have a different set of criteria and indicators if the property being purchased is an investment or a principal residence. Valuing an investment property takes a strict approach and balances valuation methodology with an understanding of design. A principal residence with allow for a more liberal approach to value, mixing valuation methodology with an understanding of the clients lifestyle needs and the details that are important to them. The quality as to which a property has been designed, constructed and finished will be evident throughout to the trained eye. It is imperative to know how to spot these quality indicators, as it will have an effect on the price you pay for it, as well as the longevity of the property itself. Whilst purchasing an investment property doesn’t mean buying the property with the highest level of specifications and finishes, it does mean that you need to be able to identify where shortcuts have been taken and identify a poorly built property. Today, there is a huge amount of media coverage, exposure, advertisement and commentary regarding the world of building, renovation, design and decoration. What there is not a lot of is education. For example, to design a renovation you need an intimate understand of construction materials, how these materials will appeal to the target market, the cost of these materials and the benefit gained from using them, and how to combine these materials in order to create a succinct renovation and to ensure the design and materials have a relationship to themselves and to the property.
Floor plan and spatial awareness is another key aspect to understanding the design of a property. A good property will have a floor plan that flows and makes efficient use of the available space. Value is often analysed through cost benefit. If the perceived benefit exceeds the cost then it is said to be of high value. The benefit in a good property is derived through the attributes listed; quality of construction, attributes that meet or exceed the target market expectations, a well designed property with the right mix of materials and finishes and close to transport, entertainment, schools and leisure facilities. Integral to any study of a property asset is how the building and other improvements occupy the site. The site should be easily accessible without subject to flooding or other negative environmental impact. Access from the car park should be simple, without a long walk or multiple sets of stairs. The building should modern day construction, design and safety standards. The building should be well maintained with access to relevant maintenance records. There should be no major works required immediately, unless you are seeking a renovation strategy.
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Qualified & licensed property agents sourcing investment properties & principal residences throughout New South Wales & Queensland.