Can anyone comment on their experience with properties on a main road. I’ve found a property on the corner of an intersection (with traffic lights) of 2 main roads (a 2 lane each-way road, and a reasonably busy interlinking road that joins the main road and another major road that runs parallel about 2 kms away). The price is quite attractive. A block of townhouses have been built on the other side of the intersection. The property has a new fence though a very nasty unkept garden/outside area (read, weedpatch).
Is it likely to make it much harder to rent out being located at this type of intersection?
Ask yourself would you want to live there. There is a house on a busy road near me and it has been demolished to put up three townhouses. So a corner block might be good if development is the aim as Yuppies do not have kiddies or a need for a backyard.
What type of people rent in this area if it is Mums and Dads with kiddies they are not going to think it is safe for their kids. Yuppies or young no kids may not worry about this.
Also it may be hard to resell the property in the future.Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Duckster,
The target tenant would probably be students or people wanting to share with others. It’s not in a yuppie area but is quite close to uni’s and tafe, about 20 mins to the CBD, 5 mins to an industrial estate, and 10 mins to a westfield. The area is quite mixed, with some young families, retirees and share accomodation.
I’m interested in this particular property as it is at a good price, even considering the main intersection, and has been on the market sometime. It’s a bit of an unusual property as at first glance it looks like a 2 unit block of units rather than a house. The RE dropped the hint that the owner may consider an offer 15% less than the already recently reduced asking price. It does need some work, but nothing too major.
Does anyone have an IP similar who could comment?
Kuade
The property is what you would call a secondary property. Its location quite often means that its price is discounted.
1) If you buy it, remember that when you sell it, it will be harder to sell, and the price will also be discounted.
2) If you really want it make a hugely lowball offer.
3) Its location can affect whether you get a reasonable rent, so maybe slightly lower. It may also suffer higher vacancy periods. But both of these things will depend on state of the rental market.
4) People renting, because they are not buying, will not worry so much about its location, as they can always move on. Quite often they get used to the noise.
So do some due diligence, ask a few different agents about rental returns in the area, and vacancy rates.
Regards
JohnInspired Finance
(02) 9944 7776
You must be logged in to reply to this topic. If you don't have an account, you can register here.
