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  1. #1

    Default Rate of value increase in different types of builds

    I've been trying to work out whether there is a difference in rate of increase in value of homes in the same area depending on the type of build. I have some evidence, based on relative RVs, that less popular properties increase in value at a lower rate but this is not at all scientific, and from limited experience.

    For example, if we take two north-facing properties in a Central Auckland suburb, one is a well built cedar townhouse and one is a villa in good condition, have these two properties historically increased at the same rate or has the villa's popularity seen it increase at a greater rate?

    Would this change if the cedar place is on a better laid out piece of land?

    I'm not asking for a magic prediction but looking back at the last 10 years.

  2. #2

    Default

    Quote Originally Posted by stevell View Post
    I've been trying to work out whether there is a difference in rate of increase in value of homes in the same area depending on the type of build. I have some evidence, based on relative RVs, that less popular properties increase in value at a lower rate but this is not at all scientific, and from limited experience.

    For example, if we take two north-facing properties in a Central Auckland suburb, one is a well built cedar townhouse and one is a villa in good condition, have these two properties historically increased at the same rate or has the villa's popularity seen it increase at a greater rate?

    Would this change if the cedar place is on a better laid out piece of land?

    I'm not asking for a magic prediction but looking back at the last 10 years.

    A very good question and I have no idea what the answer is - although I suspect all you will get from others is anecdotes. Not sure whether hard data exists for trends like this (maybe overseas?).

    Natetrade

  3. #3
    Join Date
    Apr 2004
    Posts
    687

    Default

    I know from the last property we built then sold at a later date higher Quality building materials and larger floor size doesn't get you anywhere the valued added compared to say flashy kitchen / bathrooms pieces ...

    If we built a spec home next I would go cheap and mid-sized.... cladding aka board and batten black stain etc cheap roof color steel etc basic double glazed windows ..but put the money into flashy kitchen bathroom fit-out .... also forgot the big garage just the usually BS oversize single vendors call a double

  4. #4

    Default

    Quote Originally Posted by JBM View Post
    I know from the last property we built then sold at a later date higher Quality building materials and larger floor size doesn't get you anywhere the valued added compared to say flashy kitchen / bathrooms pieces ...

    If we built a spec home next I would go cheap and mid-sized.... cladding aka board and batten black stain etc cheap roof color steel etc basic double glazed windows ..but put the money into flashy kitchen bathroom fit-out .... also forgot the big garage just the usually BS oversize single vendors call a double
    this is spot on.. people love the flashy finishing - they pay more for this. Quality materials like better timber etc don't seem to get noticed nor a premium price.

  5. #5

    Default

    The average buyer is not very sophisticated and usually budget constrained imho.


 

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