Property Location Rules - Myth or Fact?

[.toe]

Lets say you're looking at one property from each category and one in a blue chip area, and you intend to add it to your rentals portfolio. Why not do a Comparative Market Analisys on each one and then buy the one at the biggest discount to its own market. You lock in an instant gain, and go looking for another one.

Of course if you already have 10 rentals and dont want any more after this one, then buy the blue chip for the long term gain.

 

[Peter Parker]

My friend just bought the worst house in the worst street in one of the worst suburbs. So it probably makes it one of the worst houses in Melbourne.

Let's see....

It's in West Heidelberg. It's next to a commission flat. The place is built by asbestos everywhere and extremely ugly. It has easements surrounding the entire backyard so no extensions possible. It sits on a T-intersection so cars head straight for your house and people race up and down that street. It passed in with no bids during auction. No trams, trains, buses, shops. Worst part of West Heidelberg (completely detached from main part)

The best burn-out I ever saw was in Heidelberg West but the place isn't without its merits.

West Heidelberg, like Chadstone and Hampton East are commission areas within a few kilometres of some of Melbourne's prime suburbs (Ivanhoe/Heidelberg, East Malvern, Brighton). Even though the houses are just as ugly, I'd put these areas a cut about the likes of Doveton, Franga North, Laverton or Dallas.

Even if the housing stock is terrible (like Braybrook) that doesn't seem to affect capital gain of the location is handy or nearer dearer suburbs.

All of Heidelberg West is a very short bike ride from Latrobe Uni and Northland.

It is also extremely close to the Islamic College in East Preston, ie a rapidly growing demographic.

No trains, but the buses in the area are better than in most suburbs. There have been recent service upgrades including a new orbital route that runs through the middle of Heidelberg West.

If it was cheap enough your friend could well have made an excellent decision.

 

[cams.r.m]

The Rules..

Hi, I'm a first time blogger on here (actually this is my first post - so please be kind!).

From my limited PI experience (I'm fairly new to the game), I had a valuation done of my unit on the ground floor (as I'm looking to expand my portfolio) and was given a valuation quite higher than I'd anticipated/expected considering the unit doesn't have any particularly outstanding special features.

I agree with other commentators on here that traditional 'no-no's' aren't a huge hindrence so long as you have other factors in the mix that present your IP in a good light and still make it attractive to the demographic rental market your aspiring to get in there.