Real estate: how to destroy value in a property, if you really want to

Here's some advice to trash your property’s value, but you don’t necessarily have to follow it. Gnome sayin?

My job is to write articles that hopefully help make investors, homeowners and other people richer.

For real estate owners in Australia that’s required a simple strategy – buy, hold and be patient.

But what about making people poorer? Today’s column has been fun to write because this time I get to share tips for people to destroy value in their property.

Of course, if you don’t want your real estate assets to go backwards, you could just do the reverse. But that’s your choice – I won’t judge.

A new study recently landed in my inbox, all the way from British business Roofing Megastore, outlining the “fails” that can knock thousands off a home’s value.

They kindly converted their calculations into Aussie dollars, and found that ignoring your garden can be costly.

Dead lawn or no lawn? Wipe off ten grand, they say. Broken guttering, damaged garden walls or cracked patio? There’s another $10,000 each.

And don’t even think about having invasive or damaging plants – yet another $10,000 of lost value, according to the research. Overgrown weeds and backyard ponds are also unwelcome.

Your choice of colours may not appeal to future buyers or tenants.

There was no mention of garden gnomes, which was surprising because too many gnomes is just creepy.

While the research may suggest having a garden is potentially bad for a property, remember that personal space has become much more popular during the pandemic – you just have to look after it.

There are many other ways to slice value off your home. Here’s a few.

UGLY COLOURS

You may be a huge fan of hot pink walls and lime green carpets, but if you’re planning to sell your property or rent it out to tenants, you must control your technicolour urges.

Neutral colours are the way to go, because they let people better imagine how their furniture and other personal belongings will look inside their potential new home.

DODGY DIY

Quality renovations add value to a property but doing it on the cheap – or thinking you are a carpenter, plasterer or bricklayer and trying to do it yourself – is dangerous.

I once had a mate who built a large fence on his property’s perimeter, and the wonky timber palings looked like they were all drunk. I’m sure it impacted the resale value.

An overgrown garden can be a property value-destroyer.

REDUCING ROOMS

Experts say changing a four-bedroom home to a three-bedroom home is not good if you want to maximise financial returns, because it removes options for potential buyers and renters.

I have a confession: I’ve just done this at home, turning two small bedrooms into a roomier teenage retreat, but it can be easily reversed if we decide to sell later.

AXING TREES

Tree-lined streets are good for property values, so don’t cut down a shady tree even if it’s dropping leaves on your garden. It’s been estimated that street trees on the verge can increase property prices by more than $15,000.

ENERGY GUZZLERS

If your home swallows electricity like a giant Pacman, prepare to get less money for it.

Everyone’s more energy conscious today so things like solar panels, battery storage, double-glazed windows, north-facing windows, blinds and energy-efficient appliances can improve a home’s value.

Originally published as Real estate: how to destroy value in a property, if you really want to