- Modernising decor
- Landscaping gardens
A homes capital growth on the other hand....comes from the properties land component.
So what affects land value?
The suburbs proximity to Perth
Land prices generally rise the closer you get to Perth CBD, for example, pick up a UBD and a copy of the realestate WA paper, start with the centrally located suburb of Craigie - check out the house prices and then head south suburb by suburb ie. Padbury, Duncraig, Carine etc etc. You will see how quickly the prices rise as you head south.
The location within the suburb
Cul-de-sac , main road, high elevation, corner block etc., these factors can all have an impact on the desirability and therefore the price of land.
The suburbs proximity to the ocean/river
Residents of the northern suburbs will already recognise the price variation between properties on the west side of Marmion Avenue compared to the east. Land values also rise the closer you get to the waterfront with oceanfront blocks commanding up to twice as much as blocks one street back.
Availability of land in the area
It is unlikely that developing suburbs will see a big jump in capital growth while land is readily available through future land releases. Buyers are unlikely to pay top dollar for your home if they can buy land and build for less!
Block size/development potential
Blocks that have the potential to be sub-divided and developed also have the potential to make money and are therefore more valuable. Currently both the city of Wanneroo and the city of Joondalup are proposing rezone pockets of some older suburbs (draft local housing strategy can be viewed on their websites) which has the potential to instantly increase the land value.
It is hard to put a monetary value on views, however, they do have a big impact on a properties marketability and therefore market vale.
Want to maximise your homes capital growth? Then remember the old adage: Location Location