Benefits buying home on elevated block

No uphill battle: The benefits of buying a house on an elevated block – Real Estate

REAL ESTATE
No uphill battle: The benefits of buying a house on an elevated block
Feb 10, 4:15 PM
Chris TolhurstProperty reporter
I’ve owned four properties in NSW and Victoria and they’ve all had one factor in common – each has been positioned high on a hill.

Why favour elevated land?

For one thing, a hillside location is almost always flood-free. Across the world, storms and floods account for about three-quarters of weather-related disasters, and in the era of climate change they’re becoming more common. According to insurance group Munich Re, an expert on global and local risk solutions, the number of storm and flood disasters across the globe has jumped from about 200 in 1980 to more than 600 in 2016.

A home on the hill ticks also boxes from a lifestyle and return-on-investment basis.

Back in the 19th century, there were sound reasons why wealthy Melburnians bought land in Toorak. The suburb is on a pleasantly rising hill that skirts the Yarra River and is close to the city.

A similar real estate buying pattern unfolded in Sydney 130 years ago when department store owners and other rich-list types built substantial homes in the elevated inner-western suburbs of Stanmore and Petersham. The rationale? Being on the hill gave you cool breezes at sunset and a view. You also escaped the polluted air of 19th century Sydney’s low-lying areas and yet were close to town.

Not too much has changed. General elevated residential land appreciates at a faster rate than low-set allotments and the “high side” of a street is a better investment bet than the low side.

This view of the property market is increasingly backed up by research.

A study released late last year about properties sited on land elevated above sea level in several Melbourne suburbs points to these properties attracting a price premium.

Many suburbs have one part that is elevated on a hill and one part on flat land.

The study by the property advisory group Secret Agent asked if everything else was the same, would the house on the higher ground have a higher value. Property price data for various inner Melbourne suburbs was matched to corresponding elevation data from Google Maps.

Prices were then correlated to the heights for all suburbs. Only houses, townhouses and land parcels were considered, as accurate elevation data for individual apartments was not available.

The suburbs put under the microscope included Albert Park and Middle Park, Carlton North and Princes Hill, East Melbourne, South Yarra, Toorak, Essendon and the Ivanhoe and Eaglemont area. In nearly every case, the most elevated sections of the suburbs were found to command higher prices than the low-set areas.

But the study noted that some areas such as Hawthorn in Melbourne’s inner-east did not see an increase in price with property elevation. That was partly due to Hawthorn being a relatively flat suburb compared to others.

“It is also likely due to other factors being considered more valuable to buyers (including number of bedrooms and proximity to businesses, universities and public transport), as well as slopes being more difficult to build on – the latter of which is especially the case, since Hawthorn on average has a relatively consistent elevation and any deviation from this would constitute a slope,” the study notes.

Sloping land and the attendant high cost of building on these blocks is the main thing that can hold back prices for elevated land.

But overall the elevation-to-price analysis found that for many suburbs, there is a clear increase in price for properties that are higher in elevation and that these are more desirable.

“For others, we see that the elevation has a limited or no influence on the price, as it would not be considered as a main driver of value,” the report says. “A good rule of thumb however, is that the higher the property the more expensive it will be.”

Advertisements

About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
This entry was posted in Australia, Brisbane, ECONOMIC OUTLOOK, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, Empowerment, family, finance, LJ Gilland Real Estate Pty Ltd. Bookmark the permalink.