Please can you tell me what your views are on properties on main roads.
I have recently found a property that is 8kms from Melbourne CBD, however although the property is in an excellent condition with a decent size garden, 3 bedrooms & 2 bathrooms, it is situated on a main road. Whilst inside the house the traffic noise wasn’t that noticeable. There is a tram stop right outside the property.
We would probably live in the property for a year and then rent it out. I am confident the property will attract tenants as the house is well presented with transport literally at the door. Our only concern is the busy road.
Would you be discouraged to purchase on a busy road given the price of the property is fairly reasonable?
Thanks for your help.
MrSimba
I personally would not buy a PPOR on a busy road. I also would not buy an IP on a busy road, unless the price was extremely cheap. Don’t forget that many people won’t want to rent it and when it comes time to sell, many people won’t consider even looking.
The only way I would consider it would be a really cheap deal, with good cash flow, because capital gain will be less than even one street back from the main road.
Just my opinion, Wylie.
I think it will prob rent well being close to transport etc but you may find difficulties when selling. Ensure you get the best price possible to make up for your having to sell it under the value of a comparable property two streets back.
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Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No, a property on the main road is not for me.
You say that it is a fairly reasonable price- so it should be, it is on the main road.
If the same property would be located in a quiet street or cul de sac, for instance, the price would be more, and should be.If you need to sell one day, other potential buyers will also expect it to be a fairly reasonable price.
I can’t imagine that traffic noise is not that noticeable when there’s a tram stop at the door! I’m sure that you were distracted or inspecting in the middle of the day when the noise may not be so noticeable.
Can you imagine lying in bed sober at night or early in the morning, and having to listen to the cling-clang and ding-dong trams stopping and taking off every 15 minutes or so?I rented on a busy road, and NEVER again. Every time a truck went past the house it was like surviving an mini-earthquake.
You will have a high turnover of tenants. Insomniac zombies that will leave the house as soon as the lease is finished!
Either that, or tenants that are noisier than the traffic surrounding them.
Either that, or tenants who can’t afford to rent in a quiet street and are atttracted by the ‘fairly reasonable’ rent you’d have to come down to.Don’t mean to sound so blunt (I’d be more sensitive if you already had bought the property
)) )(I’d be telling you all about double glass windows etc) but these are my views on properties on main roads and I wanted to express them without the frills.Celivia
Hi,
Time to get creative … fit the house out for a deaf person i.e. add the flashing light for the phone ringing etc (speak to the local deaf association for details of their needs). Find a tenant through the local deaf association – you may find there is a real shortage of rentals that cater specifically to the deaf. You could even find the tenant first and then in consultation with them complete the work they require. They would have to pay a little more rent for the added work but you will have no complaints about it being noisy.
Worth a look if the property is a good one
Goodluck
AndrewI’ve lived on a main road, across from a train station too, so it wouldn’t bother me to rent your place. I could live in the middle of a roundabout, but of course I’m an exception, so be ware that most people wouldn’t touch it but there are others, like me, who wouldn’t have a problem.
Besides there’s nothing like a high front fence, thick bushes or double glazed windows that would help with any noise problems. You’d be surprised at what you can get used to…[sleepyanim]
mrsimba
Residential Property
Some rules you may want to considerWhen seeking to purchase property well positioned property should always return good CG over time.
When not buying for CG it should return good constant cash flow. If you think this property will do either or both, I would buy it. If I were worried about either or both, I would walk away. I would then start to look at the other thousands and thousands of property in Aust that will give me confidence in the purchase. Good luck.Bradshaw.
Bradshaw
Bradshaw, very good advice, I totally agree.
Sometimes we are getting too emotionally involved and focus too much on the one property we are after and lose sight of the very basic rules. Thank you for reminding us.
Celivia
I seem to recall Steve talking about a similar topic in one of his books or a tape I have. He & Dave were looking at a block of units close to a busy road. They asked one of the tennants if the noise bothered them and they said definatly not. It helped them get to sleep.
As Steve mentioned at the time, remember you aren’t going to be living thereso don’t let your personal tastes & preferences dictate what you buy.
Cheers,
PeteYes, perhaps, but still…IMHO, it’s always less risky to own a property that appeals to as large a pool of tenants as possible than it is to appeal to just a smallish section of potential tenants (e.g. just to the ones that don’t mind noise and pollution nearby).
Probably not noticeable when vacancy rates are low. But when the rental market gets competitive is when properties like this are riskier.
Celivia
what is the problem with a busy road?
Roads do not deter me at all, as long as the numbers stack up and the house is OK, who cares about the road? You’ll always find a tenant if you market well and you are a good landlord.
We have found that houses on busy roads sometimes come with deeper discounts, which means that profits are greater!
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
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phone 0412 437 582Originally posted by Dr.X:We have found that houses on busy roads sometimes come with deeper discounts, which means that profits are greater!
Exactly! For the buyer, not for the vendor. When you are ready to sell one day, you will also have to sell at a discount.
We’re just looking at it from different angles, X, which is a good thing so people can form a balanced view (I hope).
Celivia
I rented a place next to a train station in sydney for 2.5 years. I rented next to a train station in NZ for 1.5 years, I live next to a busy road now, the only thing that bothers me is the sirens when there is an accident. I would move in if there was a tram stop outside my door, I am always running late each morning and groan each time i see my bus go past before i get to the bus stop.
I am not a heavy sleeper by any means, but you get used to the noise. By the time the tenant has been there for 6 months-12 mths they will be well used to the noise.
I found a brilliant product at the sydney great ideas home show for soundproofing your windows if it is a concern, the results were amazing. check out http://www.magnetite.com.au its relatively cheap compared to double glazing and works really well for noise reduction.
I find it hard enough to find a rental property that hits all on my list of must have’s so the road its on would be irrellivant, have you thought of making sure it has all of the creature comforts to attract tenants? air con, dishwasher etc, all depreciable of course!
I love the idea of contacting the deaf association, brilliant! with it being so close to the transport you may find they could be very interested. now that is thinking outside the square!
good point celevia, but we have tricks to sell at the price we want [
]it all depends on what your exit stategy is and as investors, we are all different!
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
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phone 0412 437 582Good on you, X!
MrSimba, have you, in the meantime, decided anything yet?
Great many different opinions on here, that’s what I like about these forums.[thumbsup2]
Celivia
I have lived near a main road and you do get used to the noise… after a while if someone does comment it’s like “what noise?”
I don’t know about trams – I’ve never lived in a city with them but trains are another thing. The sound of the train itself doesn’t bother me (I actually like the sound of them) so being near a train line is good.
What I will never do again is live next door to a train station. Apart from the joy of waking up to hear that “the 6:04 train departing platform 1 will stop at all stations to the city” there is the entertainment value of drunken vandals lurking about all night. We were going insane from sleep deprivation [wacko] and ran for our lives at the end of the lease. For some reason we just could not tune out to these kinds of noise. It was convenient though and being deaf would have shed a whole new light on things. As long as the drunken vandals didn’t decide to pay you a visit through the night though. We did have someone break in to our laundry and steal everything that they could carry without a trolly, which was not too much really, my husband’s tools and the kids’ budgie (even the box of seed!) as far as I can remember. Thankfully we were out at the time.
The main thing that would turn me off buying is the problems you may have if you had to sell. When you are looking at recent sales in the area, narrow it down to ones on the main road and see if there is a trend towards cheaper sales prices there when compared to the more quiet streets (I’m sure you will find this but do it for yourself). If it turns out that the property is cheap even when compared to others on the same main road them maybe it is a good thing.
Have you reached any decision yet?
Sonja
can u convert the use to commersial and or sell signage wrights ???
resiwealth … think outside the square![suave]
)) )(I’d be telling you all about double glass windows etc) but these are my views on properties on main roads and I wanted to express them without the frills.
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