Hi Everyone,
I've recently looked at a 2 bedroom villa unit, situated at the end of a cul de sac which backs on to a railway line.
The station is approx 200 metres up the rail line from the property and there is a small dirt area next to the tracks, past the cul de sac, which appears to be used as a car park occasionally.
The property is within 10km's of the city (Melb), and in quite a good area. The unit needs a bit of work and we'd be looking at living in it for a year or two, renovate, then rent it out.
What are your thoughts on buying a property so close to a railway line?
Does it affect prices etc.Thanks
Woodie
There'd be a bit of rail noise (trains stopping every 5 minutes, click clack or screach of train wheels etc) but you'd get used to that (depends whether the t/h backs onto the line or is further away from it too).
The price has already taken a hit because of its location, unless there is to be an increase of intensity of use of the line eg become a goods line or duplication, there would be no unknown effects. This property will always be 10-15% below the price of purchasing elsewhere in the same suburb however will not lag behind any price movements. (Just compare the last sale prices of these t/h with the median price of the suburb at the time compared with the present, although the stats may be skewed for other factors).
Woodie wrote:What are your thoughts on buying a property so close to a railway line?
Does it affect prices etc.Yes it affects prices Woodie…..and No, I would not do it. It is not ideal for resale, CG or tenants.
Thanks heaps for your comments – we had another look, and it really doesn't look appealing – lots of through traffic and graffiti and doesn't feel that safe! Will be definitely staying away!
Agree with above comments
I would be keen to buy 500-1km from the railway
Woodie,put your steve mcnight hat on.Try and take the emotion out of it.As scott said it will be 10 -15% below par with others.Being walking distance to station will offset noise.You said it is in a good area.Do your research,whats happening in the area.Find outas scott said whats happening with the line,are the trains increasing etc.Culdesacs are a positive with young families.Check out how far to daycare,schools etc.Or think what type of tenant would rent it,then how far to pub ,gym etc.Then building inspection ,are their body corporate or other fees on t/h?You said it needs some renovations.visualize,cosmetic,not structural can be cheap,but makes a stunning difference.How many windows are towards the rear.Is it designed for outside use at the back,deck ,patio.Double glazing works and makes ahuge difference.Put in an offer knowing it wouldnot appeal to 80% of people as their PPOR.Crunch your numbers,work out $ spending on renos,how much you will rent it for.If offers accepted you could possibly do the reno in 6mths then rent it out if its not suited as your PPOR.Good luck
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