Believe It: Sexually Suggestive Street Names Hurt Home Values

A recent study by U.K.-based found that rude-sounding street names impact home values by an average of 22%.

Feb 28, 2014 at 5:24PM


Do you live on Dutch Oven Avenue in Salem, Ore., and own a vacation house on One Hoe Lane in the Caribbean island of Saint Martin? If so, then I have bad news for you.

A recent study by found that "properties on streets with the rudest, most embarrassing names in [England] are worth an average of 84,000 pounds less than similar properties close by."

That's right... according to the real estate website's research, a rude-sounding street name reduces property values by an average of 22%. Bet you never thought of that when you were shopping for a home.

The one upside revealed by the study is that people who aren't offended by innuendo-laden street names could very well use the information as a bargaining chip in negotiations. As the authors note (emphasis added):

60% of Brits admitted they would be put off living on a street if it had an embarrassing name. But for the 40% who aren't so concerned about how others react to hearing their address, it seems there could be bargains to be had on roads such as Crotch Crescent [and others that are even less appropriate].

Not content at that, asked more than 2,000 British adults to vote for the most embarrassing street names to live on. The generated list was too provocative to enumerate here.

The point being, it makes sense why homeowners would be hesitant to print up stationary and return-address labels if their houses happened to be located on any of the identified streets.

According to a resident who lives on one of them, quoted by the U.K.-based Mail Online, "If you're ever ordering anything and tell people your address, as soon as you say [omitted street name], they know exactly where you mean."

On a more serious note, the study reveals -- albeit inadvertently -- the many factors that need to be taken into consideration when buying a home. In theory, for instance, the value of residential property equals the discounted cash flow that you could get from renting it out.

Let's say you could rent out your home for $1,500 each month, and that it costs you $1,300 a month in mortgage expenses, maintenance, and taxes. Your annual free cash flow would be $2,400. Project that into the future, and discount it at the desired rate, and that's the true value of your home. 

By comparison, now let's say that your house is smack dab in the middle of Crotch Crescent Court. If renters are less inclined to assume the address, then you might be forced to lower your asking price for rent. As the preceding example demonstrates, this would have a direct impact on the property's economic value.

At the end of the day, who would have thought a rude-sounding street name could have such a significant impact on the price of the average home? Well, after reading this, I suppose you would have.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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