Secondary Locations
Hi Rolf
Have to disagree with you.
Article in API some time back addressed this issue in great detail, ie houses on main roads, rail lines, airports, jails, garbage tip, heavy industry etc.
Worth a read, as it basically covers just about everything including the disadvantages, its also backed up with stats and covered every State.
In a nutshell secondary locations can effect:
vacancy rates
harder to sell even at heavily discounted prices
This can also vary from State to State, one of the valuers interviewed mentioned that secondary locations in a particular State would be somewhere between 10-15% lower than better locations in the vicinity, and discount can be as much as 20% in extreme cases.
Most of the experts interviewed advised investors to stay away from secondary markets. However if attracted to the lower price tag you would need to research area, negotiate discount and factor in an extended vacancy period when calculating anticipated rental income.