Do You Have Postcode Envy?
Do you have postcode envy? Is buying a home based on a postcode really all that important? Let’s investigate!
It is true that buying in specific areas of suburbs, or a suburb altogether can mean a dramatic difference to the price of a house. We’ve seen countless examples of residences literally 30 metres away from each other, only divided by a single lane road, where the purchase price is $50K more. Yes $50K more! Both houses use the same shopping centre facilities, are under the same council precinct, and all other amenities are identical.
By setting aside your potential postcode envy, you can really reap a bargain, and it presents a great buying opportunity. An example of this is in the outer metropolitan suburbs of Melbourne, where one house was in the suburb of Narre Warren South, whilst the other was in Cranbourne North. Cranbourne North as a suburb has a poor reputation in the real estate world, but this individual estate area was quite isolated from any of the troubles befitting its name, which were several kilometres away.
The buyers of this house, who were only 150 metres from the Narre Warren South border, were able to buy their house at a bargain price in a newly established estate. When they sold it several years later, the postcode envy had subsided greatly, as the market realised that this pocket of the suburb was on par with what was happening in Narre Warren South, and not Cranbourne North. This provided for an excellent outcome for the seller of the house, and the buyer was very happy with their outcome too.
There are many other opportunities, of course, in locations across all different states, where you can use postcode envy to your benefit. Sometimes, postcode envy is legit, but most of the time, it’s all in the mind. Best of luck with your future purchases!