What price for water views?

Discussion in 'Investment Strategy' started by Bluebags, 19th Aug, 2009.

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  1. Bluebags

    Bluebags Member

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    I'm looking at a unit that has uninterrupted water views towards Canada bay (sydney).

    The unit below has good views, but interrupted, and sold for about $520k.

    What value do you put on having the uninterrupted views?
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    I think more important are uninterruptable views - what is the liklihood that something would be build (or would grow) to obscure your views - even if they are uninterrupted at this point in time?

    No point paying a premium for views that may disappear one day.
     
  3. Bluebags

    Bluebags Member

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    Hi Sim, Good point, but I reckon there is next to no chance of being built out.
     
  4. Waimate01

    Waimate01 Well-Known Member

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    I agree with Sim, and there are sadly plenty of examples of people who had uninterruptable views built out because of something that was never supposed to happen.

    But also, from a purely economic rational point of view (which isn't strictly valid because owning a place that makes you feel you want to live there transcends simple economics), you'll frequently find that it works out better to own and rent out three or four 'scummy' units that you wouldn't want to live in, and rent to stay in the one you do. You might find you receive a yield of 5%, but only pay a yield of 2%. And if the unthinkable happens, you shrug your shoulders and move. The nice thing about scummy units is that its hard for them to suddenly have their value impacted in a negative fashion. Rent your domicile off someone else who's taking the risk.

    I've never taken this approach, but I'm certainly happy to recommend it to others ;)
     
  5. Jacque

    Jacque Jacque Parker Premium Member

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    View prices vary, as there's a large difference between seeing the Harbour or Parramatta River :D Having said this, however, each suburb on the water has it's "preferred" aspect and locals will be able to tell you where that is exactly!! Just go for a walk and ask :D

    Canada Bay isn't my part of town but in the lower north shore region, water views (especially highly elevated ones) can add up to $100K+ easily when compared to a unit on the other side of the building without a view. Recent example was a building in Waverton where the price difference was just under $100K for two similar units, except one had a water view of Berrys Bay.

    Be careful to ensure, however, that views are permanent, as Sydney is still a changing city and some views cannot be assured!