We all know it pays to follow that old adage of “location, location, location” when it comes to buying property. Finding the right street, in the right suburb, in the right city, in the right state is crucial in maximising your long term returns.
Now, according to an article by Bronwen Gora published in The Sunday Telegraph this week, your property could be worth $100,000 more if it ends in the word “Street” as opposed to “Road”.
Those lucky enough to have an address that ends in Avenue, Esplanade or Parade, could be up to $400,000 better off when it comes to the value of their home.
Gora says, “Analysis of NSW home values based on thoroughfare types has shown the average price of a house on a street is $516,000, compared with $409,000 for a dwelling on a road.
“Boulevards, avenues and esplanades have average prices hitting $511,000, $649,000 and $809,000 respectively, while those on a parade come in at an average of $641,000.”
John Edwards, managing director of Residex, who compiled the figures comments, “This shows there is a clear tendency for certain street types to be used in high-cost areas.”
The news gets better for people who live in a “Gardens” location, with 54 in NSW ending in this word having an average value of $1.18 million.
But if you live on a “route” or a “highway” your house is likely to be in a lower price bracket than home owners who have “road” in their address.
“The lowest-cost thoroughfare with any significant usage is ‘route’”, says Goran. “There are 36 ‘routes’ in NSW, and the average house price is $251,000. ‘Highway’ dwellers fare worse than those on ‘roads’, with an average value of $381,000.”
Barry Mann, head of residential development in NSW for developer Stockland, says, “Street types should also help you navigate through a neighbourhood.
“The word ‘street’ is more community-focused and local in nature, whereas ‘ways’ are typically short and narrow and connect two places.”
In the same article, Australand NSW chief executive Tony Pizzolato said they chose street types very carefully.
“There’s no point having a waterfront street name like ‘esplanade’ on a normal suburban street, for instance,” he said.
“It won’t make people want to buy if you don’t back it up with landscaping or actually having a waterfront.”