Main Rd for a PPOR if it's the back unit?

C

Chloe

I'd like to know your opinion on units/houses on main roads for a PPOR

This particular location is Heathmont. It's the back unit, 3br's but on 300m2.
Not sure if it would offer much capital growth down the track given it's on a main road and I wonder if I'd have problems selling it down the track.

Thanks
 
Probably need more information, however in saying this I don't necessarily think there is anything wrong with purchasing on a main road, however it comes down to what you pay for the property in the first instance.

Of course as it is your PPOR there will be other things to consider, noise factor, how many in the block, ratio renters/owners, strata fees etc.

If the location is inferior then I would expect a discount, same situation when you go to sell, buyer would also expect a discount.

I would personally research similar properties on same street to get an idea on sales and time/period on the market. Make sure comparisons are correct, ie size, condition etc.

Cheers, MTR
 
- Valuers are more conservative with main roads.
- You'll restrict your PPOR market somewhat which may affect the future sales price.
- Growth on main roads is usually compromised somewhat.

The thing to keep in mind is that the current sales price will already include the discounting factor of being on a main road. So in a sense you'll be able to get more for your money as far as quality or size of accommodation, or proximity to desirable amenities.

If you're buying for PPOR and you're happy with the property then go for it. Often the place we want to live is a compromised investment and the place we want to invest in is a compromised home. It's rare to have both.
 
Thanks Guys,

The block has only 2 homes and that's the back one.
In the ideal world I'd rather not live on a main Rd but as I'm guided by my budget I'm willing to compromise on some things.

This place is just down from the shops and very close to the station too. It's an area i'm very familiar with and like a lot.
My main fear is resale and being stuck with a lemon that won't sell due to the main road!
 
In boom times nobody really cares about such things. In quiet times, falling or flat markets like now, properties in secondary locations usually get hammered.
 
Buying on a main road

Something to consider other than noise and pollution is the ease of getting into and out of your driveway. Even if you may not drive a car (I have no idea), at some time you will have deliveries. Especially on moving day.

When I was first married we bought a cheap house on the side of a main road. Like you, we had budget constraints. We bought at the start of a boom and were just happy to get "anything". Eight years later we were a bit ticked off with the traffic. The biggest pain, though, was the revolting neighbours who kept us awake all night with their drunken shananigans.

When we decided to sell it was a slower economy. The market was oversupplied with brand new houses down the road in a new estate which appealed to more buyers than our place. We still made a truckload of profit because of that boom, but we took three months before we found a buyer and another two months until settlement.

Be aware of all the issues and make an informed decision. Good luck.
 
RightValue said:
In boom times nobody really cares about such things. In quiet times, falling or flat markets like now, properties in secondary locations usually get hammered.
Click to expand...


I am curious, so what constitutes a main road, I know sounds like a silly question, but we have just recently purchased a development site on what I would call a main artery road, but not 2 double lanes, but I guess moderate traffic.

We had a valuation recently finalised and it did not jeopardise the value and in the report the valuer stated "moderate traffic", I am just trying to get my head around head around this and how valuers tick.

Cheers, MTR
 
It also depends on the % of total stock in the suburb that is on a main road. As an example, take the Pacific Hwy around Roseville, Lindfield, Killara, Gordon etc. The majority of apartments in these suburbs are on the highway strip or close proximity side streets. There are significantly fewer apartments that are in suburban streets and so being on the main road does not really drag down the valuation.

However if the suburb had say 3000 apartments and only 10% are on a main road, these would be abnormal and scored down accordingly.

For what its worth, my PPOR apartment in Killara was a top floor rear of block set back from the Pacific Hwy, and apart from occasional noise from a truck compression braking, it was pretty quiet. I had no issues selling (sold in a bit over a week) and its value tracked the same as the rest of the suburb over the years I owned it.
 
MTR said:
I am curious, so what constitutes a main road, I know sounds like a silly question, but we have just recently purchased a development site on what I would call a main artery road, but not 2 double lanes, but I guess moderate traffic.

We had a valuation recently finalised and it did not jeopardise the value and in the report the valuer stated "moderate traffic", I am just trying to get my head around head around this and how valuers tick.

Cheers, MTR
Click to expand...

Easiest way is to check google maps. Any road that is Yellow or Orange is too busy. White roads are good.

If you want to really check, check with state planning or even local council town planning and look at traffic volumes and expected changes until 2050.
 
Jake Milne said:
Easiest way is to check google maps. Any road that is Yellow or Orange is too busy. White roads are good.

If you want to really check, check with state planning or even local council town planning and look at traffic volumes and expected changes until 2050.
Click to expand...

OK, that is good, nice and simple

Cheers MTR
 
"hi...i'm a prospective purchaser and i must have a property on a main road."

"hi, i need a rental. needs to be pet friendly, must have 2 bathrooms and must be on a main road".

there are two sentences you're likely to never hear.

food for thought.
 
In the ideal world I probably wouldn't buy on a main road.
I may go and see this property and think it's hideous but in my budget i think it's better than living on a street full of housing commision houses, next door to power lines, next to a factory or a house that will probably make me faint due to the smell of cat's urine!

Although I would like to walk out my front door, turn left and walk 100 metres to get to the best cafe in the area. There's a great strip of shops there too and if i feel like catching the train (highly unlikely) i can cross the road and walk maybe 200-300 metres...and no this place is not on a train line.
It's surrounded by great schools, it's safe and family friendly. Give me a main road in Heathmont anyday instead of a mansion in Frankston or Dandenong...or even Bayswater!

I'm aware that there isn't going to be people waiting in line to get a house on a main road, I certainly never thought i'd even consider it.
I've lived on Warrigal Rd in Surrey Hills before and I didn't find any issues whatsoever except that i couldn't walk anywhere as there were no shops nearby.
 
Hi everyone.
Came across this site and enjoy it now that I'm looking at investing again.
I have had a flat in Parramatta for many years and don't intend to sell it but obviously want capital growth and to be able to leverage against it if need be.
Regarding main roads. It is on the Great Western Hwy near a cross street so right near traffic lights too.
Advantages of this position are that it is right near Westfields - 4 min walk; Chinatown and Parramatta station and CBD - 10 min easy walk. (But I don't wait to cross the hwy at the lights - that would take an extra few minutes).
Advantage of being near lights is that there is always a break in the traffic where you can cross the road or back your car out.
Disadvantages are noise (although you get used to it) and probably fumes.
Being on main road in this part of Sydney is not an issue. All up G.W. Hwy around my place is medium/high density apartments so just the norm.
CG wise my drawback is being a one-bedder (abeit a large one). And its biggest drawback is in valuation not rental return.
So main road - no issue for that area; one BR - issue for CG not CF.
BTW rent about to go up to $300 pw
Value - don't know - maybe 270k
 
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