Backs onto Train Line

[Sharpstone888]

I am looking currently at about 5 properties to be my first IP (initially PPOR then IP). One of these properties backs onto the train line, this train line is raised which means you have no privacy what soever.

The asking price is 305K, whereas similar build houses in better location are fetching ~320K.

Should I try for this property (but what sort of discount?). Or should I just ignore as it is too much of a risk and I growth early on in my portfolio is very important??

What is everyones views/experience on train lines??

Cheers,
Chris

 

[Jacque]

Hi Chris

Is it a house or unit?
When you say no privacy whatsoever, can this be changed at all with fencing/screening?
How often are trains coming past?

I must say, it wouldn't be my first choice, and if the difference is only $15K for a similar house away from the train line, I know what I'd buy...

 

[wishing_well0]

I think I know the house you are looking at as was interested in it until I got the address. I have crossed it off my list as I am sure that there are better properties in the area to consider and the "discount" would need to be alot more as it is a very busy train line. Good Luck

 

[Propertunity]

No backing onto train lines..........too hard to resell if you ever need to in a hurry.

 

[Rolf Latham]

5 % differential for being "close to transport"

Your rental rtn will possibly be even lower than the 5 % capital difference.

While the property will probably grow at the same rate as others in the same demographic, you may have issues with getting better quality tennants.

ta
rolf

 

[Sharpstone888]

The general consensus is avoid the train line property, I actually inspected the property yet. I've seen other houses and their exposure to the train line. Hopefully there is lots of trees. If I could get a massive price reduction I might consider. But now, NO.

Thanks guys.

Chris

 

[csc]

yep i agree with the majority, forget the trains, think of the future if you need to unload in a hurry for some reason.....you will be limiting your potential buyers to train buffs, fools and insomniacs...

umm! i think that counts me in as a buyer there with one of those!

buy elsewhere 100% if you can....be patient, good deals come along if you can wait and watch.

good luck.

 

[Propertunity]

If I could get a massive price reduction I might consider.

No, don't even consider it IF there was even a massive price reduction. Banish that thought from the furthest reaches of your mind.
No main roads, no cemetaries, no public toilet blocks, no schools, no train lines, no, no, no.
There are so many good areas to buy in this city / nation - why do something that is just difficult to rent and sell if you need to?...........based on price

 

[zee]

I am also considering a property, not along train line, but with a school at the back, it was play time when i went to check and it was really noisy, went again in the early evening and it was ok since kids have all gone home. However, I am still hesitant as it might limit the number of potential tenants. There is also a bus stop at the front. I would like everyone's view on this property. It will also be our first IP. I've been searching for a while, and it gets tough with all the FHB, paying more than what I want to pay for on previous properties I was interested in.

I've also seen other properties, one is weatherboard. Personally, I don't like weatherboards (i have an impression it will be too cold?). But i'd like to hear other's opinions. Is it harder to rent out? More prone to termites?

Thanks all.

 

[Propertunity]

I am also considering a property, not along train line, but with a school at the back, it was play time when i went to check and it was really noisy,

Don't give it a second thought - move on to the next property...seriously.

However, I am still hesitant as it might limit the number of potential tenants.

That's right and limit potential future sales - just like you (as a potential buyer) are considering the downsides.

I've also seen other properties, one is weatherboard. Personally, I don't like weatherboards

Con: you have to paint them every 10 years. Pro: You can keep changing colours to suit whatever the current trend is. Brick colours can date too - remember the red brick days. Yes they can be rendered but then that needs painting every 10 years just like weatherboard. (with the possible exception of using coloured oxide in the render)

Is it harder to rent out?

No

More prone to termites?

No. Bear in mind that brick homes have timber frames prone to termites too. (with the possible exception that there are some more steel frames getting around these days)

 

[Sharpstone888]

No, don't even consider it IF there was even a massive price reduction. Banish that thought from the furthest reaches of your mind.
No main roads, no cemetaries, no public toilet blocks, no schools, no train lines, no, no, no.
There are so many good areas to buy in this city / nation - why do something that is just difficult to rent and sell if you need to?...........based on price

I have looked at one on a main road. Terrible, they were asking $335K, they would be extremely lucky to get 270K for the noisy dump.

Train line avoided completey.... Theres more houses that don't have any of the mentioned negatives so the odds are certainly in my favour

Cheers,
Chris

 

[josko]

Hi there,

There is no way I would buy it. This is a marred property of lessor quality. You will need to be prepared for that when you want to sell one day.

If you should ever NEED to sell, like I have recently - you will find you will have trouble with buyers who will be thinking exactly what you are thinking.

Good on you for moving on.

Regards Jo

 

[Rixter]

IMHO give backing onto train lines & also main road frontages a BIG miss.

 

[see_change]

I'd avoid any property with an obvious negative.

Cliff

 

[WinstonWolfe]

respectable tenants who care about getting a good night's sleep so they can go to a well paid job and carry out their duties responsibly, don't want to be disturbed by trains rattling past 24/7.

otoh, tenants who don't work and aren't that attuned to their environment because their hearing is impaired due to years of partying with the music above 100dB, or they have poorly disciplined adhd kids who scream all day and a dog that barks, don't mind living on trainlines.

your choice is to pick which tenants you think will give the best net yield on your investment......

you also need to consider what a valuer will make of the train line when he does his drive by valuation when you approach the lender to get a reval for a LOC.

 

[atti]

got a friend that lives facing trainline i swear to go i would never live there even if i have a mansion, the screeching and train horns and brakes every 20 mins would drive any man and their dogs nuts... unless....