Sam: Want to know what your property or the property you're considering purchasing is worth?
In today's video, we're going to talk about the five key elements to be considered when
valuing a property and where you can go to get access to a free property report.
Sam: Hey guys, it's Sam.
At Lendi, we've helped thousands of Australians estimate the value of their property.
If you're time poor, jump onto lendi.com.au to get one of our free property reports.
Before we start, if you're interested in getting great home loan tips in Australia, hit the
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Sam: There are never things the contribute towards the value of a home.
Here are the five biggest contributing factors.
The first is supply and demand, market conditions and recent sales in the area.
This is pretty simple.
Your property will be worth more if there's a shortage of supply in the area and the demand
is there.
The supply and demand of the property in your area can be determined by a number of different
economic factors such as inflation, employment rates, and different lending restrictions.
Current market conditions will significantly impact demand and prize.
You can get a pretty easy indication by checking recent clearance rates in your area.
Sam: The second major factor is comparing recent local real estate sales.
A good way to get an indication of the price of your current property is to compare recent
sales of comparable properties in the area.
You can do this research on a website like domain.com.au and make sure of the properties
you're comparing to have been sold in the last three months so that they're reflective
of the current market.
Sam: The third and arguably the biggest factor is location.
Location will significantly impact the price of your property.
Generally speaking, a house in a desirable area will be close to the CBD, have good schools
and hospitals nearby, and we'll also have good access to public transport.
While you cannot change the location of your property, it's important to consider that
the value of the suburb could significantly change over time.
This means the property could potentially be worth much more than when you originally
bought it.
For example, if the suburbs had a significant amount of development in the area.
Certain lenders will restrict their borrowing depending on how they categorize the location.
For example, a suburb can be classed as high density if there's a high supply of units
in the area and this can significantly impact the amount a lender is willing to offer.
Sam: The fourth main element is the size and layout of the property.
This plays a key role in determining the property's value.
A property with more than one bathroom and multiple bedrooms with a cohesive layout will
genuinely be valued at a much higher rate.
Many buyers would choose location over size and layout, as a property can be improved
and upgraded over time.
The renovation potential of the property is also something to consider.
Can additional bedrooms or bathrooms be added or can the property be extended?
All of this will add value to the property.
Sam: If you want to add value to your home by renovating or upgrading, you could access
equity in your property to complete the renovation.
Jump onto lendi.com.au to speak to a Home loan specialist and find out if this is an
option for you.
The investment potential of the property is also something to consider
How easily could the property be rented out and what's the rental demand in the suburb?
Sam: The fifth main element is the property's condition.
If the property is in a poor condition, whether it's internal, external, or structural, this
can turn off a lot of buyers and can also significantly impacts the property's prize.
Keep in mind that first impressions such as street appeal can add significant value to a property.
That's it.
The five main elements to consider when determining a property's value.
Do you know what your property's worth or have you recently valued your company or had
challenges with valuing your property?
Please let us know in the comments below.
Sam: Now, if you're looking to refinance or purchase a new property, jump onto lendi.com.au
to access your free property report.
You can also join our private Facebook group, Home Loan Hacks Australia, where we give useful
tips and talk all things home loans.
If you found this video useful, please give us a thumbs up and add any comments in the
section below.
Lastly, if you're wanting to know more about the hidden fees of home loans, check out this
video here, or if you want to check if you're on the best interest rate, you can check this
video out.