The relationship between amenities and property value

By the resi financial blog team, 03 October 2013

What amenities add value to a property investment

The latest report from consumer informer firm Secret Agent has highlighted a direct correlation between the appearance of coffee shops and food establishments and the value of property in the area.

This information could be extremely valuable for anyone interested in purchasing an investment property, while continuing to prove the importance of location in the property market.

Using Melbourne as a base for the study, Secret Agent highlighted the relationship between trendy establishments and hip areas, and the price and popularity of property in the area.

The report uses the example of Gertrude Street in Fitzroy, Melbourne. Originally, this area was considered a run down slum area, where a one bedroom apartment sold for $175,000.

This same apartment was sold in 2012 for a huge $669,500, following the emergence and growth of boutique stores, coffee shops, art galleries and restaurants in the area.

According to a Coffee Club research project in 2011, 76 per cent of Australian adults visited a café at least once a month, with Sydney taking out the top caffeinated spot - recording that three out of five Sydneysiders went to a cafe at least once a week.

Melbourne patrons were less frequent, with one in five Melbournians visiting a cafe four to seven times per week. Coffee sales have been forecast to reach almost $800 million through 2013.

The evidence points towards lifestyle becoming an extremely important factor to consider when it comes to successful property investment.

Not only do investors need to look into predicted growth for property, but taking note of the overall development of an area could be key for investment success.

Investigating the changes and growth of your selected investment city could be a pre-emptive way to help facilitate your property purchasing decisions, and aid you in securing a profitable, fruitful investment in the near future.

Categories: Home Loans, Property Investment