Locating a property that stands out from the crowd will help you pull in higher rental returns and sell for a higher price - but what should you even be looking for?
Blogger: Sam Saggers, CEO, Positive Real Estate
It’s amazing the value placed on objects that at one time cost so little to buy.
For example, one of the most expensive baseball cards, the 1914 Mickey Mantle, is valued at millions - whereas fans could purchase it for pennies in the early 20th Century!
Cards from the 80s and 90s? Not so much.
Nobody wants them. Manufacturers made thousands of them, so they’re littering the basements and attics of collectors everywhere.
The Mickey Mantle, however, cannot be found in everyone’s collection; therefore it’s rare - and valuable.
Rarity is a good thing in collecting… and in real estate.
Remember that, just like in baseball cards, the value of a property is determined by how much someone is willing to pay for it.
So what is it that makes a property rare?
The following features are some ways that a property could be considered rare.
1. Location (e.g. mountain, cityscape, seaside, etc)
There is a finite amount of land, especially in high growth locations. Factor in geological features such as a seashore or population spread as in the case of the CBD and you’ve got competition that leads to increased prices.
Property which has been owned by a famed celebrity or a notorious villain or which has seen a historic or tragic event can be considered rare and consequently be more expensive than similar homes.
Locked gates and shared facilities are not necessarily rare, but they are less common than many residential properties and some individuals will pay more to live in such a location.
4. Style or design period (e.g. Art Deco, Victorian, Edwardian, etc.)
Factors can include the type of materials used, whom it was designed for, the layout of the structure, the architect’s reputation, etc.
5. Unique Properties
Think England’s Buckingham Palace or perhaps the Coonac house in Toorak, Victoria.
These properties are unique and would fetch a hefty price on the market, however they’re obviously not the type of rare property that will deliver a good return for property investors.
A rare property can deliver higher returns, but only when paired with great market drivers and a demographic that desires such a dwelling.
What This Means For Investors
When you’re looking for your next investment property, keep the concept of rarity in mind as you search.
Market drivers are important and should be part of your decision; however don’t discount the effect that a unique property or an ordinary property with unique features can have on your profits.
Your target audience will determine what features to look for.
For example, families would prefer a larger yard whereas low or maintenance free landscaping would appeal to single professionals.
Have you experienced the benefit of a rare property?