Service Station behind back yard. Need advice

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From: Peter Davidson


Need advise quickly please. I have made an offer on a double story house for $280,000 in a prime location about 20k's out of city in Eastern suburbs area in Melbourne. It is situated two houses off a main road(semi) walking distance to shops, restaurants, schools and buses. Only problem is that there is a service station behind the back yard of the house. Cannot see it from house as has tall fence and service station is about 20 meters out from house. Couldn't smell any fumes and didn't seem to be much noise(more noise coming from main road, not a lot, but noticeable), but I think is more psychological than anything else. Would you see this as a deterrent to future tenants or buyers. It has 5 bedrooms, 2 bathrooms, with 3 car accommodation. House is run down and needs about another $40,000 to fix up if I lived in it. Should get $340 per week if rented which I will for first 2-3 years. I will offer up to $290,000 if need be. I very much believe it has growth potential, except for service station issue. Your thoughts\experience please.
 
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Reply: 1
From: Anthony C


Is that $340/week after $40K fixup, if it is then thats only about 5% return, you'll have to kick in a bit to keep the loan going.
Have you spoken to any property managers in the area, get them to tell you if the service station is an issue.
Is it a 24 hour Service Station?
Regards
Ant


 
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Reply: 1.1
From: Peter Davidson


No, $340 p/w before renovations. It is a 24 hour service station but can't see it from house as house is higher than servo and there is a tall fence separating. Have just made another offer about 30 minutes ago for $305k, vendor won't accept $280k or anything under $300k. I reckon real value is about $320k. I hope I'm not getting carried away, as this is my first venture into IP's. This forum has given me the support and confidence and hope that I'm not making a big mistake.
 
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Reply: 2
From: Neophyte .


Peter,

Instead of bidding yourself up, you might like to sit on your offer for a little while, let the vendor think about it and when he/she doesn't get a higher offer they may come back to you.

If they get a better offer then so be it. There's always another train right behind the last one.

Don't appear too eager or the vendor just might keep you hanging on to see how high you will go.

If they don't get back to you after a short while and the place is still on the market then make a new offer. You seemed a little flustered and rushed in your emails :)

Hope it all turns out right.

regards
Paul
 
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Reply: 2.1
From: Michael G


Peoples,

A question, in this sort of scenario, has anyone ever waited, then basically gone back and offered a lower figure then the one previously offered?

Basically saying/telling the agent that they had their chance, that since the property hasn't sold it can't of been worth as much as they think, not even as much as you thought and that your new offer reflects a more true to market price?

In your views, would this get the Agent thinking "hmmmm we missed out the last offer, if we keep waiting the offers will get smaller and smaller"

Can anyone say such a tactic has worked?

Regards
Michael
 
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Reply: 2.1.1
From: Craig A


I have a building business in Adelaide and recently came across people living behind a service station. They said that the service station itself wasn't a problem until they installed car washes.

The owners stated that customers would come in any time of day or night to was their cars. Washing the cars was not the problem it was the noise from car radios, idiots laying some rubber once finished.

The owners told me if they had their time again they wouldn't live behind a service station.

Hope this gives some help.

Craig
 
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Reply: 2.1.1.1
From: Peter Davidson


Thanks all. The more I think about it the less eager I am to get this property, read on. Other noise factors include:

* Air compressor
* Trucks unloading fuel
* Revving engines
* Starting cars\trucks
* General noise

other factors include:

* security
* fumes - petrol and car
* continuous lights (24 hours)
* Gas leaks

As we would like to entertain in the back yard, I don't think this property is appropriate.

Thanks all. I just got a little carried away as the house has a beautiful design. A lesson for next time. I have withdrawn my offer.
 
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Reply: 2.1.1.1.1
From: Gee Cee Cee


Don't worry !!!

Something else will come up.

Then you will think. "So glad I did not buy that house."

DON"T GET EMOTIONAL. It is only a chunk of bricks, wood, plaster & dirt.

Gee Cee
 
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