31/08/2022
7 qualities that make for an A-grade property
1) Quality
It goes without saying that the quality and condition of the construction of the house have a significant influence over whether it is an A-grade property or not.
Grade properties are quality builds in good condition.
2) Scarcity
While cookie-cutter-style houses might be desirable for some, from an investment point of view they don’t make good sense.
While the quality and condition of the house itself are important, the scarcity factor is just as much so because when it comes to selling, if there are a lot of buildings the same as yours on the market at the same time, it could undermine the value.
The era that which the property was built tends to lead the pack and period homes like Victorian and Edwardian are scarce and have high buyer appeal.
Capital growth on this style of dwelling is usually higher than in more contemporary constructions.
3) Natural light
A property with a northern orientation is always the most sought after because it gives an abundance of natural light.
Western-facing yards are still popular and prove a very strong second option.
4) Good floor plan
A-grade properties generally have a well-thought-out floor plan which flows throughout the house.
Think dining which flows to an outside al-fresco in the back yard and good-sized bedrooms located together with central bathrooms.
Buyers are willing to pay more for properties with a symmetric and convenient layout.
5) Privacy
Properties which are able to offer an element of privacy would be far superior to a property that is overlooked or surrounded by high-density buildings.
6) Land
And there is more to an A-grade property than just the building itself.
The land characteristics, particularly the land-to-building ratio is also important.
That’s because A-grade properties are not overcapitalised with expensive buildings on small blocks of land.
7) Location
A-grade properties are generally found next to other A-grade properties, on quiet and well-maintained streets as opposed to on busy roads or in undesirable areas.
Now it’s all very well meeting all the criteria for an A-grade property, but unless it’s in a premium location then it still wouldn’t be considered investment-grade.
Having said that, it doesn’t have to be located in the most expensive suburb but the location must offer proximity to transport, amenities and open spaces - remember the 20-minute neighbourhood we’ve talked so much about?
After all, the ability to work, live and play all within 20 minutes’ reach is the new gold standard desirable lifestyle.
This includes things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs.
You will find these are often in the gentrifying aspirational lifestyle suburbs of our capital cities and people will pay a premium to either own a property in these locations or rental property in these locations.
Many inner suburbs of Australia’s capital cities and parts of their middle suburbs already meet a 20-minute neighbourhood test.
However, very few of the outer suburbs would do so.
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