|Driving Property Prices
Every house has ?kerb appeal?, and buyers form an immediate impression of both the property and the neighbourhood based on external appearances. Whilst you might be used to the diverse makes of car regularly parked in your street, did you know that the type of car driven by your neighbour could affect property prices in your area?
A recent survey* has associated actual percentage increases/decreases in property values with particular vehicle types. For example, if you are unfortunate enough to have an HGV truck regularly parked outside your property, your house could be devalued by up to 16%. This reduces to 12% and 11% for caravans and ?white vans? and an unused car with no tax disc could result in a 7% reduction in value. Motorbikes, with their noise associations count for a possible 5% devaluation.
However, the upside is that certain cars parked nearby can tell prospective purchasers that they have found an exclusive address. An upmarket, expensive 4X4 could raise prices by around 9%, whereas a number of luxury executive cars such as a Lexus or Mercedes ?E? Class suggest affluence and contribute up to 11%. Surprisingly this rises by just one percentage point to 12% for a ?Ferrari-lined ? street, although house prices are already likely to be high at that type of address!
Strategic house-hunters should of course seek out up-and-coming areas. These are typically those where a handful of smart cars appear in an otherwise unfashionable area. This is a strong indicator of gentrification and house price percentage increases there should outperform more established and affluent neighbourhoods in the medium term.
You can?t do much about your neighbour?s car if you are selling. But if you are thinking of upgrading your own vehicle, it could pay dividends to do so before, rather than after your move!
* Source: Assertahome
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