Hello,
I found a 2 bedder property I really like but it's on a main road and doesn't have a garage. Because it's on a main road you have to drive down a bit further to park on a different street. From where you can park it's probably a 1-5min walk back to the property. I really like the suburb and it's minutes walk from the beach. There are frequent buses right in front of the property that takes you to the closest train station (about a 5-10min drive to the train station).
Because of this issue, the property is set at a really cheap price, way under the suburb median value.Do you think it is a good investment considering that it is way under the median price or the cons out weighs the pros?
any advice is appreciated!!
thanksIt depends. What is the target market? Does the target market have a car? Is there an opportunity to add a garage or off street parking (if it is a house maybe, if it is a unit then probably not).
If the target market has a car and every other similar property has a carspace or garage, then it doesnt seem to tick enough boxes to make it a desirable property and so is probably not a good investment. There is probably a good reason why this property is way below the median for the area.
Cheers,
LukeHi Luke,
Thanks for your response. I think the majority of people in that suburb have a car as there is nothing within walking distance (besides the beach and an outdoor 50m swimming pool). There are however frequent buses right outside the property (1 every 10mins) that takes you to the shops (5mins to the shops) and train station (30mins to the closest train station).
There wouldn’t be an opportunity to add a garage as it’s a unit. I looked at some data for the suburb and 61% drive to work while 30% caught public transport.
But you’re right, so far the more I think about it the less I’m liking it as there is no garage OR off street parking (you have to drive into a different street as it’s on a main road with clearways).
Thanks,
ChrisChristopherLee wrote:I think the majority of people in that suburb have a car as there is nothing within walking distanceHmm that could mean that if you bought the place, your prospective tenants would be people without cars which could largely be students and the unemployed. Not ideal.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
ChristopherLee wrote:I think the majority of people in that suburb have a car as there is nothing within walking distance (besides the beach and an outdoor 50m swimming pool).Hi Chris
Welcome to the forum.
It sounds like you might have answered your own question. If most people in the area own cars – then you’re restricting yourselves to a small pool of potential tenants that don’t.
Think about the resale as well. The next person to buy this property is likely to have the same reservations.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for all your advices guys, really appreciate it.
My hunt continues………
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