A sense of freedom, luxury and achievement are felt when one sets eyes on a wide expansive ocean view. For some investors, price is not an issue and the view that takes their breath away is the one that is a must have. But the question begs, is it worth the investment? Here is a breakdown of what constitutes an increase in a property’s value:
- 1% – 2.5%: From ground level, a home with a view overlooking unobstructed open space (not necessarily water as the open space).
- 3% – 5%: A home just high enough to overlook trees or other buildings, with apartially obstructed view.
- 6% – 8%: A good unobstructed view but without much elevation; a home halfway up the hill, for example.
- 9% – 12%: A home at the top of a hill with an unobstructed view (of a landmark, city or other).
- 15% – 20%: A water view. An outstanding, unobstructed view of a big lake or ocean can start at a price increase of 15%, and if highly unique, prices can increase vastly.
On average, it is found that grand open views of water that are highly exclusive can add up to 59% of the value of a property.* It is noteworthy, that as the distance from the coast increases the impact on value greatly diminishes. Other important factors include attractive landscaping, which on average adds 5% to the value, buildings in a property’s neighborhood add 37% to the value, and attractive improvements in the immediate surroundings of a property add another 27% to value*. The overall conclusion is that aesthetics are multi-dimensional and can havean important impact on property value. A one of a kind view may be worth the investment and creating your own garden can turn in to more than a hobby; it could be a great investment choice in the end.
†Merilyn, Lewis. “What’s the value of a view?” MSN Real Estate. Microsoft, 25 May 2013. Web. 01 11 2013. <http://realestate.msn.com/whats-the-value-of-a-view>.
*Bourassa S C, Hoesli M, Sun J, 2004, “What’s in a view?” Environment and Planning A 36(8) 1427 – 1450.