Thoughts on this property

Looking for general advice on this property:
http://www.realestate.com.au/property-house-vic-spotswood-119776495

What are your thoughts on buying on such a busy road? In general terms, how will this affect capital growth of the property in proportion to the rest of Spotswood as a suburb? Does having the rear access help outweigh the detriment of being on a busy road? Does being so close to the train station help at all from a rental point of view.

Would be looking to buy with my partner initally as a PPOR. Renovate over the next three years [general cosmetic facelift plus, open up the back [east] end of the house to an open kitchen living area with bathroom and get rid of the granny flat/tacked on bedroom/2nd kitchen area], then set up as IP.

Any thoughts/ general advice welcome.
 
It's your choice but I personally stay away from properties with buyer objectives, things like main roads, right next to shopping centres, property sloping down on land, etc, just to name a few!
You need to do some research on the area though!
 
I don't buy properties on main roads, however they do usually rise in proportion with the rest of the properties in an area, but they come off a lower base point.
 
I've bought several IP's on main roads.

Advantages:
  • More likely to be permitted for alternative purposes (note there is a chiropractic clinic a few doors from the property you listed)
  • More likely to get approval for redevelopment (units/townhouses)
  • More likely to benefit from rezoning. Last VIC government rezoned many residential properties to NRZ but my properties remain GRZ. I know other investors who had main road properties rezoned to "Growth Zone" which has caused a significant increase in value.
  • Capital growth generally in line with rest of suburb
  • Closer to infrastructure (transport, shops) which has been appealing to tenants.

That said, I probably wouldn't buy on a very busy road, one with a speed limit over 70, or one which carries a lot of truck traffic.
 
This is an extremely busy road, so I wouldn't buy. But the area is great - I own a property in the next suburb, looking forward to getting it re-valued next year.
 
As others have said, CG is generally inline with the rest of the suburb.

Negatives are:
1. Much harder to sell (if you need to at some future date) - days on the market can be 12+ months for main road properties in a down market. If you really need to sell, you'd need to drop the asking price.
2. Rents are lower.
3. Vacancy rates are higher and tenant turnover is also higher.

Personally I would not buy it unless you want to run a business from home and need the exposure.
 
Spotswood is a fantastic area, but Melbourne Road is extremely busy. Plus the house is close to the freeway ramps which is probably the busiest part of the road. I would only buy if for PPOR and you were desperate to get into the area but can't afford properties on quieter streets.
 
3 simple rules:

1. Buy under value.
2. Corner blocks are for ********s (unless you can subdivide)
3. Main roads are for bigger ********s (think of how many houses are available for sale each year - why buy the one on the main road?)
 
3 simple rules:

... which are complete nonsense!

Drive around Melbourne's inner and middle ring suburbs and look where the 4 to 6 story apartments are being built. Hint, more often than not, they're not in quiet back streets. There would be plenty of happy people who bought houses on main roads 15 years ago!
 
... which are complete nonsense!

Drive around Melbourne's inner and middle ring suburbs and look where the 4 to 6 story apartments are being built. Hint, more often than not, they're not in quiet back streets. There would be plenty of happy people who bought houses on main roads 15 years ago!

They're usually on roads with tram lines or next to railway stations where councils have approved high density developments. I don't think there is any close to this property on Melbourne Rd.
 
They're usually on roads with tram lines or next to railway stations where councils have approved high density developments. I don't think there is any close to this property on Melbourne Rd.

Sorry, wasn't suggesting that this particular property on Melbourne Rd was suitable. Just pointing out the foolishness of applying blanket rules about not buying corner properties/on main roads. Each property/investment needs to be evaluated on it's individual merit.
 
... which are complete nonsense!

You're complete nonsense!
Why do you think I said simple. How many caveats can you fit and still make it simple: unless it is or will be zoned for more dwellings one day and there is enough land to fit enough dwellings on that land to make you a profit worth holding the land for that time and you have or will have the finance to be able to develop or find finance partners or win the lotto by that time...
He also said as a PPOR for now.
 
You're complete nonsense!
Lol!

Why do you think I said simple.
I have no idea why. Maybe simple is your thing? :D

How many caveats can you fit and still make it simple:
Not many. That's why financial investments are generally not simple. They require rigorous research and planning. That's the opposite of simple ("complex").

He also said as a PPOR for now.
Yes he did. And he said it would then be an IP.
 
Top