Hi All
Can anyone throw some light on buying a house on a busy main road in Sydney is a good idea or not. What are the advantages and disadvantages of buying, and are the rental returns in the current market equivilant to other houses which are on the inner streets of the suburb. Appreciation and time it takes to sell a property on the main road.
I am looking at a 2 bedroom unrenovated house with room for expansion, about 15-20 mins peak hr drive from Sydney CBD, and on Public Transport Corridor.
Regards
Ashish"If you are not in, you are out"
ashish,
obviously a busy rd means a reduced price for factors such as parking, noise, polution,desirablity,resale value ( particulary in a flat or backward market, everything sells when things are hot but you will have trouble moving it when its not) you are reducing your buyers (supply demand) etc etc etc…… so as an investment in terms of capital growth it wont perform as well as a well located property. It also depends on what kind of busy rd you refer…and where it is on that busy rd .ISsit Parrammatta rd kind of busy or king st newtown or oxford st paddington kind of busy, both busy but king and oxford st will most likely out perform parra rd for obvious reasons..such as the suburd there in and the facilities and buzzing lifesstyle around them.
Rent return is difficult to know without more specific info on the property itself and what you may compare it too, but i would imagine depending on the rd then the reduced price will be similar in percentage to the reduced rent so the yiled may be similar, you may even get a better yeild on a busy rd…
hope this helps.
Family renters with young child would be renting in a quieter not so busy location.
Getting in and out of property with a car may be a problem.
you could lose part of the front yard if main road is widened in the future.We bought on a busy main road in Brisbane, but we are not near a traffic light so there is no problem with access to our driveway from traffic buildup or anything, and the house is double glazed an there are no noise problems. We paid significantly less for the property due to its location, and were happy with that.
We are now looking at renting the property out and the real estate estimates we will have to ask 20-$30 week less rent because of the location, and that it will not appeal to some tenants (mainly due to the steepness of the driveway, not the busy road, as the quiet backyard will appeal to families). But overall, because of the significant cost saving in purchase, we still believe we did a good deal and are happy with our purchase as we would not have been able to enter the market otherwise.
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