Understanding how to value Adelaide beachfront real estate
House prices are determined by a wide range of factors: some are basic factors such as location, property size and comparable local sales, whilst others are more intangible factors such as supply and demand, interest rates and demographic change.
But you can take the guesswork out of valuing your property by looking at the three key factors that set house prices.
What size is your land?
Generally, land is an appreciating asset – i.e. it gains value as it ages.
Adelaide beachfront real estate is a particularly stable asset for several reasons:
- it is highly sought after
- it can’t get built out by other houses
- it won’t be devalued by other developments or structures (such as a new mobile phone tower) being built next door
The bigger the land the higher its value, so size of land is a key factor in determining your property worth.
Beachfront homes are always in hot demand, and your home could be worth more than you thought.
How old is your property?
Opposite to land value, the property itself is actually a depreciating asset – i.e. it loses value as it ages.
Newer homes are typically worth more because they are structurally sound and because they are more appealing to buyers – with open-plan living, energy efficient appliances and modern décor.
However, alongside the age of the property is the condition of the property.
A well-kept 1980s home will be worth more than a dilapidated 1990s home.
Also, houses generally have a 20–30-year overhaul cycle for big-ticket items such as roofs, windows and air conditioning.
Therefore, a house that is 30 years old with large-scale replacements done could be worth more than a 20-year-old place that is due for repair.
What access to the beach do you have?
Driving the value of all beachfront properties is access to the beach, where proximity to the beach brings a direct increase in value.
Also, any property with direct beach access will command a premium, being of significantly higher value than those properties that don’t.
If you would like a free valuation of your beachside home, just give the experts at McGrath Real Estate a call because we understand the coast and know how to help your property play to its strengths.