Main-road unit

[luckything]

Would you buy a property/villa that is in "main road", but at 10-15% discount price (considering that the property is located in the inner-ring area 5-8km)?

My understanding, if the suburb value increase, this property value will also increase, isn't it?
Am I correct?

 

[Propertunity]

Would you buy a property/villa that is in "main road", but at 10-15% discount price (considering that the property is located in the inner-ring area 5-8km)?

No.

My understanding, if the suburb value increase, this property value will also increase, isn't it? Am I correct?

Yes, BUT:
Vacancy rates will be higher (tenants can rent in a quieter spot).
Time to sell (if you want or need to) will be longer as there is a smaller pool of buyers who will buy on main roads. Remember, if you need to sell, it may be at a future time when the market is slow or IRs are high. These properties can sometimes take 12+ months to sell in these periods (unless you drop the price - and who wants to do that?)

 

[Rolf Latham]

finance can be problematic especially if loansare > 80 % and LMI is required

ta

rolf

 

[Corey Batt]

No thanks.

Even though prices can be lower, this is priced in due to the negatives. The downside reval/resale is near unlimited as it's at a valuers discretion/how brutal the market wishes to be against properties like this.

LMI can be a pain at times with these properties depending *how* much of an arterial road it is, but this can be mitigated.

 

[Gockie]

Totally a risk but if it's a location where the buildings will be converted to high rise apartments in future you could do well. But it's speculative only.

 

[bobby85]

would you say the same for secondary roads (traffic lights, still has fair amount of traffic, but still has road side parking, single lane etc)?