Buying an apartment next to a milk bar on a main road

Hi All,

I am new to property investing and the forum. Hope someone can give me their opinion on an inner city (7km from CBD) apartment I am interested in as my first IP.

It is a 2 bedder second level apartment on a main road, but, the front yard is good distance away from the pavement (no gates). This is very much a residential area but there is an old milk bar right next door, which is still operating.

My first concern is main road, will this matter much to the potential renters?

My second concern is the milk bar. I haven’t lived next to a milk bar before but I have seen kids hang out in front of milk bars in the area I used to live. Do you think this is going to be much of an issue?

Thanks in advance for your views,
San
 
Hi All,

I am new to property investing and the forum. Hope someone can give me their opinion on an inner city (7km from CBD) apartment I am interested in as my first IP.

It is a 2 bedder second level apartment on a main road, but, the front yard is good distance away from the pavement (no gates). This is very much a residential area but there is an old milk bar right next door, which is still operating.

My first concern is main road, will this matter much to the potential renters?

My second concern is the milk bar. I haven’t lived next to a milk bar before but I have seen kids hang out in front of milk bars in the area I used to live. Do you think this is going to be much of an issue?

Thanks in advance for your views,
San


Hi San,

Inner city apartments can make very good investments. You are right to question whether a main road will deter potential tenants. Can you hear any traffic noise from the inside of the apartment? It is possible that you may always have to discount your rent to attract tenants (which is not a good thing).

I'd also look at how many apartments there are in the block. The less, the better as then you have a greater share in the value of the land that the block is sitting on.

Regarding the milk bar - It could actually be a positive as it would be convenient for tenants to stock up on supplies during the week.

Apartments/flats with parking are sought after by tenants, and if the parking space is on title, then this is better for resale and capital growth.

Regards Jason.
 
Hi All,

I am new to property investing and the forum. Hope someone can give me their opinion on an inner city (7km from CBD) apartment I am interested in as my first IP.

It is a 2 bedder second level apartment on a main road, but, the front yard is good distance away from the pavement (no gates). This is very much a residential area but there is an old milk bar right next door, which is still operating.

My first concern is main road, will this matter much to the potential renters?

My second concern is the milk bar. I haven’t lived next to a milk bar before but I have seen kids hang out in front of milk bars in the area I used to live. Do you think this is going to be much of an issue?

Thanks in advance for your views,
San

whereabouts is this ?
 
Hi San,

Inner city apartments can make very good investments. You are right to question whether a main road will deter potential tenants. Can you hear any traffic noise from the inside of the apartment? It is possible that you may always have to discount your rent to attract tenants (which is not a good thing)...

Regards Jason.

Yes, you can hear quite a bit of noise form the road.
Thanks heaps for your advise Jason, it has helped me a lot.

Cheers,
San
 
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