Hi All
I'm currently considering buying my 2nd IP, its a corner block with one side on a busy road, it's pluses are very lge 4br, + ensuite and rumpus or office, dble garage + extra sgle garage, large 1000ms block, close to shops and schools. It's in the ACT and I'm hoping to purchase it at a very good price as the owner is desperate to sell. The house is in A1 condition. The only thing putting me off is the busy road, would that affect me getting tenants and/or it appreciating much in the future.
Anny
Hi Anny,
I personally prefer to live in a quiet street, however some people actually prefer to be on a main road for the sake of increased security (less isolated) and increased chance that any intruders or "no-gooders"are more visually obvious. It shouldn't detract from rentability, unless it's a hazardous highway intersection.
That's a nice big block, check the zoning and potential future use i.e: subdivision. Is the longer side of the block on the quiter street and the width to the busy road? If so, future sudivision would have the side street as a frontage. Do the numbers stack up for you? Have you got any comprarable sales in that area, preferably on the main road? What are indicative rentals in the area for similar houses?
I guess I'm answering you with more questions. Basically, if the "deal is right" the main road should not put you off especially if you've got room to negotiate with what sounds like a motivated vendor
Thanks Michael
I'll answer your questions which will add to my due diligence. I'll probably be making an offer in the next week.
Anny
check the general layout of the house (ie are bedrooms towards the rear of the house away from the road) and check the noise levels in any rooms/areas directly facing the road. Worse problems will be in summer when windows need to be left open for ventilation etc, maybe air con unit can help here. A properly designed house on a relatively busy road does nto necessariily noise levels will be an issue.
The main thing is being able to have the address in a particular suburb at a slightly reduced price. If the median price of properties in the suburb increase so does yours – it will not be left behind and you will get close to the same amount of rent.
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