Main Roads

Is a Main road always a negative? Can a unit or house that is set back with minimal road noise be a good proposition?

I see on the forum that many people shy away from main road exposure but the properties seem perhaps 5-10% below comparable in quieter streets. Does this matter in an IP?
 
My experience, from looking at some main road properties and talking to property managers who manage them is that it does matter.
The lower rent return on a main rd property is only the tip of the iceberg, in my opinion. The real cost is in more frequent tenant changeover.
Each time you lose a tenant and have to find a new one the actual;l cost really bites into your bottom line. More so than many people realise when you factor in the re letting fees, advertising and loss of rent income.
Having lived near (but not on) a main road, I can say that the traffic noise got to me after a while, but the thing I hated the most was that everything in the house was constantly being covered in the fine, black dust that goes hand in hand with main road living.
Tenants may initially be attracted to a low rent and nicely presented property, but after a while, they get over it.
 
Is a Main road always a negative? Does this matter in an IP?
Yes for all the reasons that Rob mentioned. Also if you need to sell at some point in the future and the market is not so good at that time, then main road properties can be very difficult to sell. This is not good if you need cash in a hurry.

Can a unit or house that is set back with minimal road noise be a good proposition?
Yes Julie, this is the only 'however' in the discussion. We have purchased many properties with a main road address HOWEVER, for all intents & purposes they are located behind unit towers or blocks facing the main road - so no noise or soot and a much better proposition.

One more caveat would be a tenant that needs main road exposure for their home based business - if as a LL you allow it.
 
Excellent

Excellent thank you. There seems to be some very tidy properties on main roads but the turnover in rental I hadn't thought of and until we go electric the soot would be a pain. Great advice thanks.
 
I found it hard to sell my property on a main road, even though it was set a considerable distance from the road on an acreage block.
I did not try to rent it though.....

Vowed not to buy another one.
 
We used to have a back unit on a main road - but potential tenants wouldn't even come to look when they saw the adress....

Cheers,

The Y-man
 
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