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The Inside Scoop


Going green for ‘the green’

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.

Trulia Rent vs. Buy Index

As data management and technology get better and better,  some really interesting ways to look at values are emerging.

A favourite is the Trulia Rent vs. Buy Index, which lists American cities by were it is best to either rent or buy.

You can see the recommendations from New York to Washington DC.

I’m sure the Australian market is getting close for similar information to be available for upcoming buyers.

The change to the market

The ABS has some good unbiased information to turn to about the property market.   What’s interesting is the massive change up quarter per quarter when it comes to property prices.

What’s also interesting is the different movements from capital cities.

Perth and Brisbane have worse over the past 12 months while Melbourne still managed to nudge slightly higher .  Yet I’d expect this to show a negative from the next quarter.

 

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Secret Agent - Buyers Advocate Melbourne - 292 Rathdowne Street, Carlton North, Melbourne Phone (03) 9018 7122