Property Price Killers Every Buyer Needs to Know
The Biggest Property Price Killers to Avoid
When it comes to buying property, whether you're a first-time homebuyer or an experienced investor, it’s essential to be aware of the factors that can significantly affect a property’s value and its future resale potential. Some of these factors may be immediately obvious, while others are more subtle yet still capable of undermining long-term returns. In this guide, we’ll explore the most common property price killers and how to avoid them.
1. Powerlines
One of the most well-known property price detractors is proximity to high-voltage powerlines. Even though the health concerns surrounding powerlines remain debatable, the stigma is enough to deter many buyers. Additionally, the visual impact and potential buzzing noise can make properties near powerlines less desirable, limiting the pool of interested buyers and reducing the property's value.
How to Avoid It: Before making a purchase, always check the property's proximity to powerlines. Even if you’re comfortable with them, remember that future buyers might not be, which could make selling the property more challenging down the line.
2. Substations
Much like powerlines, substations are another visual and noise-related nuisance that can put buyers off. Concerns about health and safety—whether justified or not—can affect a property’s marketability and limit its appreciation potential.
How to Avoid It: Opt for properties that are several blocks away from substations. Even if everything else about a property looks perfect, the presence of a substation nearby could deter buyers or renters, affecting your investment in the long term.
3. Main Roads
While living near a main road might be convenient for commuting, it often comes with significant drawbacks. Properties located on busy roads tend to suffer from noise pollution, higher traffic, and reduced privacy, making them less appealing compared to homes on quieter streets. Research consistently shows that quieter, more secluded properties typically command higher prices and are easier to sell.
How to Avoid It: If a property near a main road catches your eye, evaluate the noise levels at different times of the day and check for adequate soundproofing. Setback properties with good noise insulation might still be worth considering, but weigh the trade-offs carefully.
4. Adjacent Industrial Areas
Proximity to industrial areas is another major red flag. Industrial zones often bring noise, pollution, heavy traffic, and unsightly views, all of which negatively affect property values. Even if a property is located in a residential area, being too close to factories, warehouses, or other industrial operations can make it less attractive to buyers and renters.
How to Avoid It: Always research the surrounding area before buying. Check local zoning maps to see if any industrial developments are nearby or planned for the future. Even a quiet location today could face industrial expansion tomorrow, affecting your property’s value.
5. Adjacent Development Zones
Being close to a development zone might seem appealing at first, but construction can bring noise, dust, and disruption for months or even years. In addition, new developments could block views, increase traffic, and change the character of the neighbourhood, all of which can reduce your property’s appeal.
How to Avoid It: Investigate local council plans and upcoming developments in the area. Council websites or town planners can provide insight into any zoning changes or large-scale projects that might affect your property’s future value.
6. Flood Zones
Properties in flood-prone areas are a significant risk for buyers. Beyond the obvious risk of flood damage, such properties often come with higher insurance premiums, making them less appealing. Over time, this can affect resale values, especially if the area has a history of flooding.
How to Avoid It: Check flood zone maps and discuss any flood risks with your agent. Even if a property hasn’t flooded recently, being located in a designated flood zone can hurt its market value and insurability.
7. Busy Train Lines or Stations
While proximity to public transport is generally a positive, living too close to a busy train line or station can have the opposite effect. Noise from trains and station announcements can be a dealbreaker for many buyers, lowering the property’s value.
How to Avoid It: If a property is near a train station, check how close it is to the tracks and gauge the noise levels at different times of the day. A property within walking distance of a station but far enough from the noise can strike the right balance for buyers.
8. Properties with Poor Natural Light
Natural light is highly desirable in any home, and properties that lack it tend to struggle on the market. Dark or poorly lit homes often feel less inviting and can have higher energy costs, both of which are significant turn-offs for potential buyers.
How to Avoid It: When inspecting a property, pay attention to how much natural light each room receives. Homes surrounded by taller buildings or with poor window placement may be harder to sell in the future.
9. Poor Building Quality and Floor Plans
A property might seem fine on the surface, but underlying issues with the building quality or an impractical floor plan can severely affect its marketability. Homes that don’t make good use of space or have structural issues can be harder to sell and may require costly repairs.
How to Avoid It: Always get a professional building inspection before buying. Pay attention to the layout and functionality of the space, and avoid properties that will require significant work to fix.
10. Proximity to Commercial Strips
Living close to shops, cafes, or restaurants can be convenient, but properties directly adjacent to busy commercial areas can suffer from late-night noise, increased foot traffic, and a general lack of privacy. While proximity to amenities is a selling point, it’s important to find the right balance between convenience and peace.
How to Avoid It: Look for properties within a short walking distance to commercial areas, but not too close. This gives you the benefit of nearby amenities without sacrificing privacy and quiet.
By keeping these price killers in mind—such as powerlines, substations, flood zones, industrial areas, and main roads—you’ll be better equipped to make a sound investment. Thorough research and careful consideration can help you avoid costly mistakes and ensure your property maintains its value over time.
