Bad neighbours: things that drag down the value of your home
We all know a great location is key when we’re choosing real estate, but deciding what’s good and bad can be very subjective from one person to the next. We do a huge survey of inner-Brisbane tenants and proximity to public transport is critical for this group. Suburban families on the other hand are more interested in neighbourhood schools. Buyers’ agents unanimously make it clear they won’t consider anything on a busy road (a dwindling subset in this city’s inner suburbs!) Unlike The Castle’s Kerrigan family, most of us don’t want to back onto an airport runway. A location’s beauty is definitely in the eye of the beholder.
So are there any general guides on local issues to avoid when you’re buying? We love our American Realtor cousins for their incessant data mining and they recently did a nice big dive into the neighbourhood features that can drag down property prices. No doubt each nation has their own twists on these but it’s an interesting home-shopping checklist:
- bad schools: this might be a ‘chicken and egg’ issue but the data showed property in zip codes that had a school with a low rating performed 22% worse than other homes in the same county. We certainly know the reverse is true: get a sought-after school in your local area and real estate demand is palpably higher.
- being near strip clubs dragged home prices down 15%…
- a high concentration of rental homes snipped 15% off local property values. We regularly have buyers ask how many apartments in a building are rented. It’s an old bias that might be fading but is still present.
- having a homeless shelter in the zip code saw prices down 14% compared to other areas. Inner-Brisbane is home to a number of these and I’d guess many residents, unless they’re immediate neighbours, are usually unaware of them.
- 12% lower prices for homes near a cemetery… I used to live quite close to one and it didn’t bother me. Dead quiet it was.
- funeral homes cut 6% from local home prices apparently. Too creepy? Maybe it’s all those slow-moving cars at funerals with their headlights on?!
The other common ‘location challenges’ we hear in Brisbane’s inner-city are flooding zones, clubs/late night noise and railway corridors. Some buyers can also balk at having a Can Do tunnel 100m below the house.
So please share your ‘location danger list’ with us? What will you pay to avoid when you’re shopping for your next home?