Archive for the ‘Location’ Category

Service of a Divine Location

Monday, September 8th, 2014

If you’ve glanced at real estate sections over the years you’ll have seen advice against buying a house too close to the road, how a swimming pool lowers a property’s value and so on. Since hurricanes and oil leaks have more frequently had their way with beachfront properties, many are taking a second look at oceanside homes, once coveted by me especially.

On the brighter side Stefanos Chen shared highlights of a German study on the benefits of owning a condo near–though at the right distance from–a place of worship. It doesn’t matter what religion. He wrote “A study of the housing market in Hamburg, Germany, found that condos located between 100 to 200 meters, or 109 to 219 yards, away from a place of worship listed for an average 4.8% more than other homes. The effect was similar across all religious buildings studied, including churches, mosques and temples.”

Continued Chen, “But live too close to the religious building—within 100 meters—and the premium is erased, they found. Sounds associated with houses of worship are only part of the problem. The effect of bell ringing, for example, wasn’t statistically significant, he said.” The “he” is Wolfgang Maennig a German professor in the University of Hamburg’s economics and social sciences department who co-authored the journal report that appeared in Growth and Change.

Maennig told Chen that being close to transportation and sports arenas also adds value. I’d question the latter. Surefire gridlock when the local team was playing at home would make me want to rent or buy far, far away.

The jury is still out as to whether the divine proximity phenomenon affects US real estate. Can you conjecture? When moving to a condo, co-op or house, what do you look for in the location?

 

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