Sigh...Just bought in a bad area

[shiznit]

So I just found out that area i've bought my IP in is dubbed a bad area because of an incident that happened about 4 yrs ago...on the same street I've put all that money into.

I didn't believe what i was being told until I consulted my good ol buddy Google.

Now it could be that its coz of the media hype that its been dubbed a 'Grey Area', but whenever we went for inspection, it seemed like a quiet area.

Woe is us, dont know what to do. Is this one of those mistakes you make as first time property investor and you get to learn from? Wish I had done more research.

Funny how the real estate agent "forgot" to mention this while wooing us to buy the place.

 

[evand]

There is no way the agent will tell you, might result in loss of a sale.

What i would do is check historical cap growth for the area and street you bought. if it looks ok, no worries. (beside bad tenants)

Is it in a cheap area? Do you think you got a bargain? how's the rent?

Probably isn't anything to worry about.

So I just found out that area i've bought my IP in is dubbed a bad area because of an incident that happened about 4 yrs ago...on the same street I've put all that money into.

I didn't believe what i was being told until I consulted my good ol buddy Google.

Now it could be that its coz of the media hype that its been dubbed a 'Grey Area', but whenever we went for inspection, it seemed like a quiet area.

Woe is us, dont know what to do. Is this one of those mistakes you make as first time property investor and you get to learn from? Wish I had done more research.

Funny how the real estate agent "forgot" to mention this while wooing us to buy the place.

 

[wylie]

What sort of "incident" was it? Has it affected the whole street, whole area?

 

[skater]

Are talking city or regional area? What kind of incident? It could be no big deal.

 

[bene313]

There's that saying in real estate that "time heals all wounds"

..or something to that effect.

 

[VYBerlinaV8]

If it was a one off, and others knew about it, then you may well have gotten a bargain. In time, no-one will care what it was, and it won't matter.

 

[shiznit]

Excuse my ignorance, but where would I check its historical cap growth?

I wouldn't say its a cheap area as such, median house prices=335k according to domain.com.au.

We got it for 310k for a 3x1; current tenants don't look like trouble makers.

There is no way the agent will tell you, might result in loss of a sale.

What i would do is check historical cap growth for the area and street you bought. if it looks ok, no worries. (beside bad tenants)

Is it in a cheap area? Do you think you got a bargain? how's the rent?

Probably isn't anything to worry about.

 

[Propertunity]

Excuse my ignorance, but where would I check its historical cap growth?

Mate, that was some due dilligence you did there

You can see past CG trends for suburb (for free) at: http://www.myrp.com.au/showProductDetail.do?reportTypeId=1&propertyId=

But I agree with the others. The public has a very short term memory. To tell you the truth I can't even remember the street or suburb where Seth Gonzales was found to have murdered his parents. This is despite the fact that the case that ensued tipped "caveat emptor" on its head for real estate law and full disclosure forever.

 

[Strannik]

who's Seth Gonzales?

 

[cu@thetop]

who's Seth Gonzales?

He suffered an illness of the heart that can only be cured by gold.

Murdered his family in Sydney didn't he?

 

[Strannik]

yeah i googled it now.

i was just adding to the point that people tend to forget things like that very quickly.

 

[annie lumen]

yeah i googled it now.

i was just adding to the point that people tend to forget things like that very quickly.

Just a question Strannik, having viewed your advertising link. With winter on its way, does the chlorine/swimming pool business become quiet? Just curious.......is it busier in summer or winter?

As you know, where I invest, they need hydrogen fluoride to clean up the local public pools, mere "chlorine" won't cut it.

Ummm when I think chlorine I keep thinking Flanders, the Somme, Rupert Brooke. I better stop. A century after it took place, people still take these things personally.

http://www.youtube.com/watch?v=7xnNhzgcWTk

 

[Amadio]

So I just found out that area i've bought my IP in is dubbed a bad area because of an incident that happened about 4 yrs ago...on the same street I've put all that money into.

Don't worry about it. If you as the investor didn't do your due diligence do you think a tenant would bother?

It would be a different matter if it was your PPOR.

 

[annie lumen]

Property can be very forgiving. It takes time. And bad neighbors/tenants do eventually move on......

I feel your pain. I've been there. It got better. Stay strong and give thanks you didn't pay too much for what you bought.

Do you remember the shocking murders in the WA suburb of Willagee around 20 years ago? Well, I used that as an excuse not to buy there. Tragic as it was, it didn't affect prices in the slightest over the long run.

(Don't mind me - I'm the resident property spruiker here, according to the bears).

 

[Ocean Architect]

Sounds like you might be storming in a teacup Strannik As others have said, it isn't a problem until it's a problem. So long as it's fulfilling your IP criteria and performing the way you wanted it to, it doesn't matter

 

[Bon]

If it was a one off, and others knew about it, then you may well have gotten a bargain. In time, no-one will care what it was, and it won't matter.

QFT. I agree 100%!

 

[VYBerlinaV8]

Just a question Strannik, having viewed your advertising link. With winter on its way, does the chlorine/swimming pool business become quiet? Just curious.......is it busier in summer or winter?

As you know, where I invest, they need hydrogen fluoride to clean up the local public pools, mere "chlorine" won't cut it.

Ummm when I think chlorine I keep thinking Flanders, the Somme, Rupert Brooke. I better stop. A century after it took place, people still take these things personally.

http://www.youtube.com/watch?v=7xnNhzgcWTk

I recommend doing some research into the benefits of Oxygen Dihydride.

 

[shiznit]

A gang came round to the street to revenge on some kid and it ended up being a racial war between 2 groups; obviously the attacked had to protect its own and retaliation escalated.

It hasnt affected the whole area, apparently it only affected the street.

What sort of "incident" was it? Has it affected the whole street, whole area?

 

[shiznit]

If it was a one off, and others knew about it, then you may well have gotten a bargain. In time, no-one will care what it was, and it won't matter.

It seems to be a one off as i have now done my research and there haven't been any other incidents.

According to other sources, back in 2009 rentals increased by 32% in that suburb....so i guess it depends the people who live there at the time.

 

[weg]

Unless people percieve that there will be more gang wars in a particular spot (is the area known for that?) people will forget.

If the area is known for gangs the chances are the spot where the specific conflict occurred is less likely to be the biggest issue.

What's the street like otherwise? And if you didn't overpay for the property, can attract a decent tenant and the CG have been decent, then it's not all that bad.