Commision Home Next Door To IP

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From: Gordon Austin


I'm looking at a duplex investment property but it has a single Housing Commission home next door. The Commission home seems to be reasonably well looked after. However I'm wondering what impact this may have on sourcing future prospective renters. The rest of the neighbourhood consists of good quality housing. So far my initial research suggests that it has not caused any problem in the past.

Any views would be appreciated.

Thanks - Gordon
 
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Reply: 1
From: Mark Pardi


Gordon

From our experience it all comes down to the quality of the area and the home next door.

Many people are unaware of commission homes that may be around them.

It sounds like the commission homes are sparse in the area.

Unless the home is a disgrace and there are wrecked cars on the front lawn and 35 defacto kids running around.....lol

chances are it will have no impact on your rental proposition, and your property should rent to the full market value.

without seeing the site I cant really comment accurately.....however my comments are a generalization based on personal and group experience with this situation.

mark
 
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Reply: 1.1
From: Gordon Austin


Thanks for your excellent reply Mark. That was more or less similar to what I concluded but it is good to hear it coming from a real estate professional.

Gordon
 
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Reply: 1.1.1
From: Mike TheBloodyIdiot


I bought my first property next to housing department house.

Neighbour was great, and they lived there for 25 years. We have become real friends.

Then one bloody day he has won $100K in Lotto, bought acreage in QLD and moved out.

The couple who moved in their place was all right, except one small thing. They had a habit to start fighting (accompanied by yelling and door banging) at 2 am and finish it at 4 am sharp.

For one week I tried to talk to them (in English) - no result

Second week I got Housing department to talk to them - no result

Third week I got police to talk to them - there was some response, mainly in two words (first one I could not find in dictionary, second one was "off").

On a fourth week I realised that they actually could be Russians in a previous life and when they started their usual routine came to visit them and explained in Russian that it is not necessary to yell and bang the doors when you fight.

Next day police officer rang me at work saying they complained. It was not too hard to convince him that they perhaps were visited by aliens who conducted some experiments on them.

Straight after work I paid them another visit and convinced them (in Russian) that police is too busy catching criminals and it is not worth distracting them from such an important thing.

Since then I have not heard a single sound from there. One day they hit and killed a kid by their car, were arrested and convicted and another couple moved in.

These nice people in addition to everything first couple did were selling drugs. It took just one lesson in Russian, and they for some obscure reason hastily moved out the next day depriving me of ability to share some cultural heritage.

So my message would be if you do not have strong skills in Russian (most of all the in the part on how to give lessons without leaving bruises on students' body) - stay as far away as possible from public housing.

Cheers,

Mike
 
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Reply: 2
From: Phillip Jacovelli


Gordon,

My Experience.

I had an old house in a good area, which was always occupied, which I demolished and re- developed into units, they also have always been occupied. – and - I had just recently discovered that the two houses next door are housing commission. I have owned the property for over 10 years and I didn’t even know!!

It didn’t affect the Capital Growth nor did it affect the occupancy rate, also next to the commission houses – there is a PUB!

This property has been my star performer in my portfolio!

Had I known that there were commission houses next door prior to purchasing it, I may have talked myself out of it.

Let your numbers do the talking.

Phil J
 
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Reply: 2.1
From: Robert Forward


Did you all know that there are housing commission properties in The Rocks area of Sydney. Would this stop you from buying a house next door to them, I know I wouldn't be worrying to much.

Cheers,
Robert

Get your Property Inspection Reports @
http://www.CreativeFinance.com.au
 
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Reply: 3
From: Rolf Latham


Hi Gordon

"Location" is pretty much fixed, demographics can always change.

Ta

Rolf
 
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Reply: 3.1
From: Mark Laszczuk


Phil,
It's probably the pub that keeps your property consistently rented.

Mark
'no hat, some cattle'
 
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