I’m another new forumite.
Question – houses on main roads – obviously not everyones ideal location but… an agent told (warned) us that only 10% of buyers and 10% of renters would be interested in these properties. Any truth in that ? – or possibly exagerrating to sell their own properties ??
We have an option on a beautiful old period home (in very good condition) on a main road (but not one as busy as some others).
It appears to be under market value for the area – a very popular area with good capital growth.
The property has potential to value add without too much expense.
The predicted rent is good and would be close to making it a cash flow positive investment.
Are we about to make a big mistake if we take up this option ??
Any advice ?
Johndevo76Member@devo76Join Date: 2007Post Count: 542
To me it depends on how much of a main road it is. If traffic is passing at high speed and its more like a unatractive highway road side then i would say it will definatly lower prices.But if its a major road going into say a town but still has some attractive features etc then it might not. Theres lots of variables. My ip is on one of two major roads going into a town. Although the road is a bit busier than surrounding streets it does have a certain character and the speed limit is only 50.It has older homes most of which are freshly renovated building the charactor of the street. I guess it depends on your area.
Thanks for the input Mr/Ms Devo
This one is on an access road into Semaphore and Port Adelaide – easily accessible to both.
Lots of development going on there – and properties moving fast.
The road is not overly congested and has a good green corridor and a proposed bike path along it. Good public transport as well.
I’m just concerned about the potential downside – the perceived ‘negative location’ factor – and how strongly that plays out into the future ??
Any advice – good or bad – from anyones past experiences would be invaluable.
The other thing I wanted to mention/ask is big fences to screen from the road – any comments on the merits of that ?[blink]vyaw2003Participant@vyaw2003Join Date: 2006Post Count: 188
i big solid bick wall and trees behind that would be the best way to reduce noise, maybe a solid gate for car entry too, could cost a few $$$ but if u are living there, at least you will get some sleep. Remember if you only save $20k buying there, you will have to get the fence and gate for less than that or why bother buying it???JFisherMember@jfisherJoin Date: 2007Post Count: 143
Colourbond also make a wave profile iron fence sheet helps with noise reduction; cannot remember what the name of the profile is but it would be on their website.
Flipside to the negative reaction from residential renters is that the property could be altered to accomodate a Doctors surgery or something like that where a busy street location would be sought after. You would need to speak to the planning section of your council to see what the zoning would allow; you never know, you might have a property that has potential in more than one capacity.
Thanks vyaw 2003 and JFisher for the replies.
After a cosmetic only reno (say $20,000 max – not counting any fence) the house is actually more like $100 – $150,000 less than comparable ones a street or two off the main road – as it is a sought after & relatively high capital growth area.
The big unknown is just how much of a negative is the road issue (I’m sure I’m not the only one baulking at the prospect – but perhaps there is value to add there ?).
We have also thought of the doctor/chiropractor/health studio type reno and are looking into that with Council. Could be a chance to get even better rental returns – but then again that is a much more limited and very different market.
I’ll keep doing my research – but if anyone out there has done a similar thing – & like I said – had good or bad results I’d be very appreciative to hear of them – you can send a PM to me if preferable.
Thanks again for your help