If you’re purchasing a property to live in or as an investment, using local infrastructure as a point of consideration is a smart strategy.
The quality of the roads, recreational facilities and other public works can greatly influence property values in the region. Find out how you can take advantage of the infrastructure projects planned in your area.
What type of infrastructure is beneficial?
Recreational facilities – adds to lifestyle
Having a wide array of amenities - dining, shopping, entertainment and recreational facilities can have a positive effect on nearby residential property values. Improvements in infrastructure near to your property can have a significant effect on the price of your property. The better the infrastructure, the greater the value of your home.
Public infrastructure – bridges, walkways, outdoor lighting
Similar neighbourhoods often compete with one another to attract investors. So, the presence of good parks, public squares, gardens and other public spaces becomes a vital business and marketing tool. Residents are attracted to locations that offer well-designed, well-managed public places.
In Perth, improvements to the local rail network, public transport or road system, and building new roads, bridges or tunnels, have the potential to impact on property values in a particular suburb. Extensions to an existing railway line will have a positive impact on property values for outlying suburbs by providing better access to the city or public amenity. It’s not just new roads that make a difference, widening existing roads can impact areas by reducing congestion and travel times.
Why infrastructure is important to investors
When a government or private sector organisation announces new infrastructure projects, there is almost always a boost to the local community. New employment stimulates the local economy and attracts more people to the area. The indirect benefits are vast; they include increased employment, business and retail growth and improved consumer spending.
Upgrades can play a critical role in improving lifestyles and driving up property values, whether it’s an improvement in safety, new improved public spaces or better roads and transport.
Potential property buyers are often confronted with a sudden rise in property rates because of the announcement of an infrastructure project. You need to take this into account when buying in a new area; it’s important to weigh up the added expense against the potential rise in your property value.
Do your homework
As a property buyer – owner or investor – it’s important you do your due diligence on an area before you invest. It’s also important to know how long a project will take and what living conditions will be like during the construction phase. It’s not pleasant to live through long periods of construction, even if the result will bring great economic or lifestyle benefits.
Whether public or private, local infrastructure will always be a factor in the value of properties in the area.
Our East Bank development is within walking distance of to the Claisebrook Cove and minutes from the new planned Perth stadium.Share on Twitter Share on Facebook