Factors that cause property prices to rise

A rising tide may lift all ships, but there are some undercurrents that cause individual properties to do better than others. While overall market drivers are the major forces behind real estate cycles, such as monetary policy and the economy, there are other local factors that cause prices to outpace the average.

For investors and home buyers hoping for good future returns, it’s critical to consider these three factors when buying and selling in Ku-ring-gai.

Scarcity

When it comes to growing property prices, it’s all down to basic economics and supply versus demand. When you have an asset in short supply, with a lot of demand, there’s little question that property values are likely to rise faster.

While there almost always seems to be a stock shortage across Sydney, there’s a particularly short supply of family homes on larger land blocks. These are tightly held in Ku-ring-gai, but are often assets that appreciate in value if you can get your foot on the ladder.

It’s worth speaking to one of our agents about the type of buyer looking for properties in the area and any growing trends. This can give you a heads up on the types of homes likely to perform well into the future.

The ‘three Rs’

Real estate’s three big R's are the next major influence on property price growth. That is, rezoning, redevelopment and renovations. These three factors are all to do with improving your property and the value of the land and the dwelling itself.

Redevelopments can be substantial undertakings and rezoning is usually down to planners to announce changes, but renovations are in the hands of home owners themselves. This requires a smart approach to the space, watching the budget carefully and careful planning to ensure you get more out of a sale than you’ve spent on a home.

In the north, we recommend a close focus on cosmetic improvements and high-visual impact use of space. Families looking for properties to buy like to see that the outdoor areas are functional and may even value a teenage retreat. Research properties on the market to see how much they are selling for with and without the improvements you have in mind. If the budget it would take to renovate your home to this standard is less than the profit you’d make, it’s a clear sign you should consider getting out the tools.

Sales campaign

The often forgotten feature – a strong sales campaign – can be the make or break of your real estate investing plans. You may have gone to all the effort of carefully selecting a property and renovating the home but without a savvy approach to sell it, you may never see the fruits of your labour.

Writing a compelling listing, presenting the home in the right way, picking carefully chosen advertising vehicles and getting the details of the property in front of qualified, motivated buyers is no easy feat.

Don’t forget to pick your sales agent wisely by looking at how sales of similar properties to yours have performed in the last few months.