What's a view worth?

This topic has stemmed from watching the block last night, a show my wife and I quite like.

I think ultimately the show is a renovation show but I have always said the result is not really based on that. The result is based upon how the reserves are set and every year i am astounded at how wrong they get it.

I have watched a few seasons and the theme seems to be the reserve is set with a premium on apartments with a "view". For anyone who watched the show last night would have seen the top apartments with a higher reserve than the ground floor. This perplexed me!
The ground floor had a massive backyard and on top of that huge high ceilings. To me these things are worth significantly more than a view.

So it got me thinking, what's a view really worth? I know their are so many variables but for me personally I think a view of anything that is not nature is severely overrated.
I have lived in Melbourne's CBD and had what you would classify as an amazing view over parts of the CBD. Being totally honest, the novelty wore off in about 2 weeks and then the higher apartment with the view actually became a burden. Long waits for lifts, windy balconies.

I often see houses with views of the city attracting a premium and I have to scratch my head. I don't understand why someone wold pay a premium for something that is stagnate.
A house overlooking Sydney's harbour, or perched over certain parts of the ocean (I also think a view of just the ocean is massively overrated). Or my personal favorite, in a forest setting is definitely worth something, but these views of the CBD I just do not get.

I work in Melbournes CBD, level 16 unblocked views over southbank the yarra out over the G and AAMI all the way to the Dandenongs. I write this post with my blinds down. For the first 2 weeks i would stare out their, now the sun just annoys me.

Back to the block, the ground floor apartment won and won easily as i think it should have. I just think it should have had a way higher reserve but then that is the purpose of my topic. The people setting the reserve dont seem to think so...The buyers like myself seen to though.

 

I would pay to have a view of the City. I like it at night.

I agree regarding the reserves though. Who wins and who loses on the block depends on the reserve. I thought some of the reserves were ridiculous this year.

 

I'm looking at places now on the Sunshine Coast.

An ocean view (from my limited research) seems to set you back around an extra $300k for comparable properties in the same suburb without ocean views.

Cheers

Jamie

 

I've lived in a couple of older ground floor flats that were like caves. I would have given $1m for some decent outlook

 

The Block does set stupidly low reserves, I don't know what they paid for the site this year but the last one the numbers were;

Channel 9 paid 8.25M (source http://www.dailytelegraph.com.au/ne...s/news-story/27896a4e97197a0168766204877ce3ba)

Reserves was 5.6M total (source The Block (Australian TV series) - Wikipedia


So the reserves was set ~3M less than what channel 9 paid for the site yet they had spent how many hundred of thousands if not millions in sponsorships for each team?

Yup the reserves are realistic...

I would suspect the same happened last night as you have BA who are paying above the reserve as an opening bid? Which they then further pay 600k above what the reserve would be lets say that the reserve was 100k below what FMV would be so the BA is paying 500k ABOVE FMV?

Please...

 

I was surprised to see Frank Valentic there - but he must have just come off his 6 month's suspension.
Block judge fined and suspended

That aside, a BA bidding at an auction with instructions from a client to bid to a certain limit is a vastly different proposition to being asked by a client to do a report on FMV of an apartment.

 

When I bought PPOR, I estimated the river view nth to be 6-8% of the purchase price.
(Some days we sit on the veranda & play spotto)
Then there is the bush to the N/E
(we sit out there on warm summer arvo's watching birds)
I can't seperate the two on value, visitors go for the view.

A good view is worth 10% of the price (min)

 

Why engage a BA to pay 500k above FMV? Unless you are unable to make it to the auction but then surely you would consider putting an offer in prior to auction at an insane figure.

Surely the BA would be giving their opinion on what would constitute FMV or what the bank might consider MV?

 

The reserves appear to be set intentionally low to ensure that the competitors make a tidy profit - which is much more 'exciting' for the audience.

I mean, the majority of the show is total BS anyway so why would the reserves be any different?

 

I have noticed in an average suburb you don't pay much more for a view. I think it could be an opportunity to make better gains over time. Eg Brisbane - Beenleigh, Edens Landing, Algester, Parkinson
I think it would definitely depend on suburb and popularity of it!

 

Don't get me wrong, I appreciate a view. If I go somewhere that has one I will always take it in. As I said though the novelty soon wears off if it's not of nature.
To pay 300k extra for one just sounds nuts to me! I would much rather keep that and the interest on that amount throughout my life and use it to take in the views around the world! 30 times over for that price as well!

 

Personally depends what view is of?
City to me is meh I d rather a yard
Beach or lake view totally different story and would pay more
Each to their own meanwhile you should crack ya blinds every so often get some vitamin d

 

The client may have engaged a BA simply to bid only. As a BA I've been engaged to bid at auctions where the client is too nervous to bid, or unable to stop bidding when it looks like they might lose, or does not want to appear in public (celebrity or neighbour buying anonymously). Several times I have been given a limit but not asked for my opinion on price. (this can be done but is separate to a bidding only service).

Block sales do not accept offers prior.

Nope. Not unless specifically engaged to give their opinion. Otherwise they just get the gig to bid. Banks may not be involved. There are lots of all cash sales. PPOR buyers at this level are often unconcerned about FMV and just want to live there no matter what.

 

My grandparents home in Ocean Grove had a great view, from the Queenscliff light house right round to the bluff, as a kid i used to watch the ships come and go. They (nor my parents who later lived there) hardly ever sat and watched the view (unless they glanced up from the TV ).
They sold over 10 years ago for $1.2
Would say that was 40% view, 60% land (they bulldozed the house

 

Obviously a very personal preference.

Essential for me is ability to watch both sunrise and sunset.

Ideal is also active and expansive. Some of the best examples are found in the high rise on the lower north shore in Sydney which capture Sydney's skyline, the bridge, opera house etc. A hive of activity incl trains, ferries, planes (airport in the distance), fireworks shows etc.

Great vision or glasses are essential.

 

Hahaha

We have the same view but looking towards you.

If you can see the big white place at the waters edge virtually in the middle of your pic. Then go up slightly and to the right you see a break in the trees our place is around there. Our back yard is down the hill opposite to yours.

Getting back to the block the discussion about a view is mute as there were building to be constructed / being constructed to the same height as the block building so no view from any part except the roof.

 

I would pay more for a veiw if i can afford, as it's easier to sell in future and can charge premium for it.

 

It really depends on the area, and how many people have that view I guess.
My parents house is worth 1M more than a house a couple of houses down the hill. My parents house has an amazing view, the other doesn't.

 

There's no way to measure accurately.
Current PPOR has water views and well over a mil more than bigger houses on better blocks just one street back.
Access to the water probably adds a fair bit too.