Buyers Advocate Melbourne

An unusual study conducted in the U.S. by the Pacific Northwest Research station has suggested that properties with trees planted on or in the surrounding areas somehow boost the value of the property itself!

In the study, it was observed that rental units with trees on the property experienced an increased valuation of $5 monthly, $21 if the street the unit is situated on is lined with trees and as much as a $13,000 sales price hike if trees are found on the next door neighbour’s property (which was suggested by the utility of shade without the hassle of raking leaves!).

The question to ask is whether this merely relates to a desire for shelter from the meteorological elements or other intrinsic factors. Trees by themselves provide a carbon sink, absorbing carbon dioxide from the surrounding air and thus providing a more oxygen rich environment, and their root systems help to keep soil together, preventing erosion from occurring.

Additionally, on a psychological level, it would make sense that a neighbourhood adorned with healthy trees, lush gardens and well kept lawns would not only suggest that the residents love their homes and neighbourhood but that the neighbourhood as a whole is ‘of the good sort’ to live in.

Whatever the reason, and whether this study is to be believed, there would be no harm in adding a bit of flora to your properties, if not for money then for beauty.

In the wake of the global recession, societies the world over have suddenly turned to the Japanese model of conservationism, choosing to place their trust in banks and the interest returns they offer. Australia has been blessed in it’s ability to stand steadfast amidst this financial crisis, even trumping the revered US dollar, a feat not seen since 1983.

However, the strange phenomenon that is sweeping across Australia is that whilst the dollar is strong, investments in property have dropped drastically.  There might be a willingness to spend on everyday items but long term, ‘liability heavy’ spending is at a minimum. This observation is substantiated by the table below, which shows the number of days taken for a property to be sold from the time it is placed on the market to the point of sale over the past 8 years.

Whilst Sydney and Canberra boast the lowest number of days, it is clear that since the previous year, the turnover rate for property sales has increased dramatically overall, with Melbourne, Brisbane, Adelaide and Perth experiencing their highest rates in the past 8 years in 2011. This is unusual, especially in regards to Melbourne, as not only one of the major cities in Australia but the one with the most potential for growth, in all aspects of life.

The mentality governing this phenomena is that everyone is waiting for the prices to bottom out before buying; the problem is where will that bottom be and between then and now, what could or would those funds be doing otherwise? The banks offer safe but meager returns on interest, term deposits can only do so much and most unmanaged super funds are not as super as they seem.

If share prices begin to go in reverse, property prices plateau, and if the trusted interest on term deposits fall, what will be left to fall back on?

The New York Times has a great piece on creating more jobs and greater prosperity in cities by increasing the density of them.

The NIMBY (Not in my backyard) mentality is present across the world.  It’s easy to understand that many don’t want cities to become denser, especially in their own neighbourhoods.

This article makes some compelling points on the offensive for denser cities.