There goes the neighbourhood!
Abandoned Rust Buckets Dent Neighbour's House Price
Press Release by allrealestate.co.nz at 11:12 am, 14 Jun 2007
Like a book by its cover, property seekers judge a neighbourhood by the vehicles lining its streets, according to a new survey by allrealestate.co.nz. Furthermore, 56 per cent of property seekers believe the type of vehicle parked out the front of your home could affect its value.
The survey revealed living next door to an abandoned rust bucket or a truck driver are the worst offenders to affect perceived property prices. With a large number of respondents suggesting an abandoned car 'lowers the tone of the neighbood' and 'gives off the impression of an area with high crime rates'. Respondents also comments that 'the generally large size of trucks make them obtrusive' and are considered 'not appropriate for a residential area'.
Downside - Vehicles respondents believe would decrease a property's values:
Type of Vehicle % of property seekers who think property values would decrease
Abandoned car 90.31%
Truck 66.49%
Motorbikes 32.75%
Caravan 31.22%
White van 26.32%
Shaun Di Gregorio, general manager of allrealestate.co.nz commented: "Every house has what we call 'kerb appeal'. People will drive past a property they are interested in inspecting and form an immediate impression of the property and the neighbouring properties based on external appearance and the type of cars lining the street and in the drive way."
On the upside however, living in a street with the right type of vehicle leaves property seekers not only with a good impression, but the 'urban tractor' otherwise known as a range Rover or Jeep could beef up properties value by 5%.
Moving further up the scale the survey revealed that luxury cars like a BMW or Mercedes are definitely in a class of their own, suggesting a neighbourhood is both affluent and exclusive, with an expectation of adding up to 10% value to local properties.
Without a doubt the best neighbourhood is a tree-lined haven of Porsches and Ferraris. Respondents were under the assumption that having such a flashy vehicle parked outside could to set prices racing ahead by 20%.
Di Gregorio said: "Obviously kerb to kerb prestige cars indicate a super-premium area where house prices are already high. Nevertheless, savvy house hunters can find themselves a bargain if they are looking for up and coming areas. A smattering of up-market cars in an otherwise unfashionable area is a stronger marker of gentrification and house prices there should outperform more well to do neighbourhoods over the medium term.
Upside - Vehicles respondents believe would increase a property's values:
Type of Vehicle % of property seekers who think property values would increase
Premier sports (Ferrari, Porsche) 57.28%
Luxury (BMW, Mercedes) 56.34%
Executive (Holden Statesman, Ford Fairmont) 42.06%
Prestige 4WD 38.97%
Fun hatchback (Gold, Peugeot, New Mini) 34.58%
One real estate agent commented: "It gives the buyer encouragement that the neighbours can afford to spend money on their homes and maintain and improve them; they will mix with people who are successful and they believe their family will be safer and more secure in a street like this."
"But if you're trying to sell your home and the neighbour's rust bucket is blocking the view, remember most councils will remove them for you; all it takes is a phone call."
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Originally Posted by Hitcher
Hence, based on looks alone, people should perceive the RSV better than they would the GN. Expensive and flashy vs. low budget commuter. Hmmmm, I wonder? 
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