December 2, 2018 | The power of an A-Grade residential property
In a transitioning property market, A-Grade residential properties still perform well with B-Grade, C-Grade and compromised properties generally the properties that struggle.
So what is the difference between these grades? It is difficult to name every aspect however, here are the main points of each.
What is an A-grade residential property?
People often assume that A-grade properties are only located in expensive suburbs and have multi-million dollar price tags. This is certainly not the case as many of Melbourne’s different suburbs and price brackets contain these high calibre properties within them.
A-Grade properties demonstrate features that are highly sought after and tick all of the boxes for prospective buyers. Despite differing price points, the fundamentals underpinning the property’s quality are still relatively the same. Below are 5 key factors that contribute to an “A-grade” property.
Location is a key fundamental when sourcing quality and we only advise properties that have great residential streetscapes and are located within a 1.5km radius to lifestyle, amenities and a major shopping centre. Good transport options are also crucial with our growing population and train stations are most preferable.
Close proximity to hospitals, open spaces, the beach, freeway access and great school zones also rank very highly and should be on everyone’s shopping list.
The individual features of a property can be altered to suit the buyer however, there are certain features you should not compromise on. The era that the property was built tends to leads the pack and period homes like Victorian and Edwardian’s are scarce and have high buyer appeal. Capital growth on this style of dwelling is usually higher than more contemporary constructions.
The property’s orientation is a particular feature that can’t be changed. Northern orientation is always the most sought after due to the abundance of natural light. Western facing yards are still popular and prove a very strong second option.
A-Grade properties also have symmetric and flowing floor plans which ideally consist of an al-fresco living / dining area at the rear of the property that leads straight into the back yard. Formal sitting and dining rooms, bedroom sizes of large proportions accompanied by ensuites and central bathrooms also rank highly with buyers.
The privacy of a property always needs to be considered. Avoid properties that are over-looked by apartments or high-density buildings.
What are B-Grade or C-Grade residential properties?
B-Grade or C-Grade properties are generally situated on compromised streets like main roads or thoroughfares. They can also be in pockets surrounded by undesirable dwellings such as commission housing, commercial areas or high-density growth zones. They tend to be outside the 1.5km radius to lifestyle, amenities, major shopping centres and transport or too far from the CBD or beach.
Compromised individual features can include southern orientation, restricted parking, dysfunctional floor plans that don’t flow from the entry to the outdoor area or small bedrooms without built-in-robes.
They can also lack privacy due to nearby high rise buildings which can overlook the property.
Why the grade matters
In a strong market, most properties perform well as there is a ‘fear of missing out’ or urgency to just buy anything because everyone else is competing. This is when bad decisions are made as buyers purchase properties that are heavily compromised, don’t really suit their lifestyle requirements or have poor capital growth potential.
During a transitioning market, A-Grade properties continue to perform well because no matter what, there is always demand for quality. A-Grade and uncompromised properties are rare in the Melbourne market and smart buyers know to hold out for them.
The time will come when you need to sell your property and selecting the right one will dramatically impact your end sale result and capital growth potential. That is why the factors above need to be considered when making your next property purchase decision.
Beckett Property are fully licensed Buyer Advocates and highly acclaimed Property Advisors who specialise in property acquisition services across Melbourne. They encompass over 40 years combined industry experience in acquiring, selling and developing real estate and truly understand every aspect involved in the complete property purchase process.
If you are looking for assistance to source and acquire your next home or investment property, please contact one of our experts today.