Fuels Costs and the Housing Market
The fluctuating petrol price is changing the way we live and work.
Houses near public transport have great value. As the old real estate adage goes: “location, location, location” still rings true. However, location might sometimes mean having a train or bus stop close by. For business travellers, easy access to the airport is also important.
Access to transport will always be a factor, so it is worth keeping in mind when investing in property.
Buyers aren’t just choosing a home, they are choosing a lifestyle. Shorter commutes and more walkable neighbourhoods matter to a growing number of people, especially those living in congested metro areas.
Investing in a home near transport hubs, for example, might prove to be a savvy decision in the long term. Safe and accessible public transport can take the stress out of commuting and also help ease congestion.
The Effect of the Fuel price on the Housing Market
Petrol prices can have impact on house prices. Rising fuel prices also have an impact on house price appreciation. According to FNB and Statistics SA, from 2011 to 2014, the declining petrol price coincided with rising house prices.
Then, from 2015 to 2017, as petrol became more expensive and household finances came under pressure, growth in house prices slowed.
As a result, there has been a steady increase in demand for “live, work, play” spaces in major centres across South Africa.
Houses near public transport have great value.
This is also an environment which buzzes with activity way beyond the ‘traditional’ 8 to 5 working hours. Mixed-use developments is becoming an increasingly viable business model.
Benefits of Having A Home Near Public Transport
It is important to note that with the fluctuating fuel prices, homeowners are looking to public transit to get where they need to be, to help ease pressure on their pockets.
Here are some of the benefits you can look out for when investing in a home near public transportation:
You can eliminate commute frustrations. A regular timetable, combined with a consistent speed and free-flowing travel routes offers the ultimate in convenience for the whole family. You would want your home close enough to the hub to be easily accessible but still far enough for the noise of commuters does not disturb you.
You can also save money on transport. The cost of petrol might have decreased in December 2018, but fluctuations are normal. Investing in a home within walking distance to a bus or train station is a future-proof investment that enables you to reduce your transport expenses.
You can also enjoy superior value growth. Given the advantages of public transport, homes built nearby to such hubs grow in value at a faster rate than those constructed in more isolated areas.
Availability of public transport remains an important amenity for many buyers. Buying land and building a home close to these hubs offers both convenience and may boost the value of your property in the long term.