Buying next to a freeway

[KoopaTroopa]

What are your thoughts?

I have my eye on a 2-bed unit I can actually afford! But it's literally next to the freeway, the only thing that separates the front door of the unit is the unit next door, a few trees, and the "tall fence" that borders freeways.

So, how good a job of "noise cancelling" do those big fences do?

Are these types of properties just straight no-nos?

I can think of a few pros:

- more affordable entry point
- get more for the money compared to further out units
- this is a 2-bed, you can't even find 1-bed units at this type of price
- there's no upstairs dwellings, it's just two units side-by-side behind the main "house"

cons:

- the freeway!
- can't think of any more, but the freeway noise is a big one!

---

So I'll ask again for your thoughts?

Thanks guys! I love this forum!

Forgot to add that I **may** live in it but will likely rent it out first.

How big of a factor is the freeway noise for attracting tenants?

 

[DaveM]

It depends how well built the house is - noise barriers are only so effective.

After a while you wont notice the noise, and spending a few thousand on double glazing/secondary glazing can make a big difference.

However you wont really be able to use outside very much as it will be very noisy, and it will result in reduced long term value growth. You buy it cheap upfront but also sell it cheap later on.

 

[The Y-man]

How big is the fence?

We own an apartment in a block next to a major freeway - but the "fence" is a 2 story high concrete wall! I must say, while it is pretty effective in abating the noise, it reminds one of living next to a dam.....

The Y-man

 

[santaslayer]

If you are reselling in future, some buyers don't even have these types of properties on their radar - therefore you may somewhat limit its growth potential.

 

[BV]

If you are reselling in future, some buyers don't even have these types of properties on their radar

What is the yield like?
In times like this they are difficult to sell but everything sells and everything goes up in value. You just have to wait till the next boom

 

[Melbournian]

What are your thoughts?

I have my eye on a 2-bed unit I can actually afford! But it's literally next to the freeway, the only thing that separates the front door of the unit is the unit next door, a few trees, and the "tall fence" that borders freeways.

So, how good a job of "noise cancelling" do those big fences do?

Are these types of properties just straight no-nos?

I can think of a few pros:

- more affordable entry point
- get more for the money compared to further out units
- this is a 2-bed, you can't even find 1-bed units at this type of price
- there's no upstairs dwellings, it's just two units side-by-side behind the main "house"

cons:

- the freeway!
- can't think of any more, but the freeway noise is a big one!

---

So I'll ask again for your thoughts?

Thanks guys! I love this forum!

Forgot to add that I **may** live in it but will likely rent it out first.

How big of a factor is the freeway noise for attracting tenants?

It really depends on where this unit is located. if it is in inner city, it is pretty normal,

some part of docklands and southbank towers are all located near highways. I would rate being near to a highway is better than being located near to a tram line. That is from personal experience. If it is inner city, much of this highways does not really affect the purchaser or renter.

I personally had the experience of living in one which was below 2 car entrances, had 90m in front of tram line and garbage bins just outside my apartment and on the 1st level too. But i still manage to sell it (fingers cross) - waiting on settlement.

 

[KoopaTroopa]

How big is the fence?

We own an apartment in a block next to a major freeway - but the "fence" is a 2 story high concrete wall! I must say, while it is pretty effective in abating the noise, it reminds one of living next to a dam.....

I drove past last night and looks to be no more than 10m high, probably more 7-8m high...

What is the yield like?
In times like this they are difficult to sell but everything sells and everything goes up in value. You just have to wait till the next boom

I don't know! Price guide is around 250-280 but there's no tenant at the moment and similar 2-bed units NOT next to the freeway are getting over $300.

Similar (within 1-2kms) next to the freeway one is advertised at $320/wk for 2-bed, one $300 for 3-bed

It really depends on where this unit is located. if it is in inner city, it is pretty normal,

Not inner city, but in the western suburbs just near Altona

Similar to this location except it's literally next to the freeway!

 

[BV]

Koopatroopa
Ask yourself.
Is the motorway going to be widened in the future and what happens to your property or the property value if it does?

 

[The Y-man]

Koopatroopa
Ask yourself.
Is the motorway going to be widened in the future and what happens to your property or the property value if it does?

Could be wrong (and won't be first time) but that segment of the western ring is unlikely to be expanded.... quite "new" in the scheme of things.


The Y-man

 

[RedPanda]

@KoopaTroopa

My 2 cents...

Proximity to a freeway will not stop me buying an IP if everything else is alright and the numbers stack up.

Growth: In percentage terms the property will achieve very similar growth to other properties in the suburb.

 

[KoopaTroopa]

Could be wrong (and won't be first time) but that segment of the western ring is unlikely to be expanded.... quite "new" in the scheme of things.


The Y-man

Well where the property is I doubt it'll get expanded.

Where do I find out info like that???

 

[Ed Barton]

most ugly ducks you can dress up with a reno and a bit of lipstick. but if it's next to a free way no amount of make-up will change it.

these properties are good to purchase at a SUBSTANTIAL discount to the rest of burb in downturn and good to sell in a boom when properties are scarce. same applies for rentals.

 

[RedPanda]

these properties are good to purchase at a SUBSTANTIAL discount to the rest of burb in downturn and good to sell in a boom when properties are scarce.

And if done correctly, the CG thus achieved on such properties will generally be more than other properties in the suburb.

 

[KoopaTroopa]

these properties are good to purchase at a SUBSTANTIAL discount to the rest of burb in downturn and good to sell in a boom when properties are scarce. same applies for rentals.

And if done correctly, the CG thus achieved on such properties will generally be more than other properties in the suburb.

Yeah this is sort of why I'm looking at it. I wondered if I got it at a substantial discount while we're in a "downturn" (I believe we are still in one right now) then this would be an OK buy to rent out for a while (3-5 years or more, who knows)

And as you say sell in boom or after many years...

Comparable units in the area 2-bed sell for 290k unrenovated or over 300k renovated. This one looks semi-renovated (paint job, carpet replacement, bit of garden cleanup) but has "old" kitchen and bathroom that just look like they got a nice cleanup but not replacement.

is "250-280" considered "substantial"? Obviously that depends on your definition of substantial, so I guess that's exactly what I'm asking!

 

[RedPanda]

is "250-280" considered "substantial"? Obviously that depends on your definition of substantial, so I guess that's exactly what I'm asking!

Koopa, I don't think anyone here can help you with that. The definition of substantial in this specific case will depend on specific factors like how much impact does freeway has on the property in terms of noise and aesthetics, how the market is in that suburb, range of properties available in that suburb, demography of the suburb, future prospects, population pressure etc. I guess you'll have to work out that yourself.