urgent advice required re busy road,

My fellow australians i need your advice.

I have 350-390k to spend on a three bedroomed house in Sydney. Yes it is possible. I have recently lost a deposit due to termites in a house at Hammondville. I have found a house that is just what I am looking for but unfortunately it is on that quiet little road called the Hume Highway. I can double glaze the windows etc but I am concerned about investment potential re location,location, location.

There is another house I can have in a delightful location but the house has been messed up with illegal renovations. I do not like the house very much but Love the location(will keep it secret).

I really need some advice so thankyou to anyone who can help. julie
 
land is what appreciates. remember that the reason the one on the hume highway will never change - whereas the other one's downfall can be altered.

Given the choice from what you have said i would go with the better located house.
 
Agree with Belu

What I would be doing is wanting a reduced price due to the illegal renovations. How successful you are in negotiating lower price will really depend on how hot that market is.

Cheers, MTR
 
My fellow australians i need your advice.

I have 350-390k to spend on a three bedroomed house in Sydney. Yes it is possible. I have recently lost a deposit due to termites in a house at Hammondville. I have found a house that is just what I am looking for but unfortunately it is on that quiet little road called the Hume Highway. I can double glaze the windows etc but I am concerned about investment potential re location,location, location.

There is another house I can have in a delightful location but the house has been messed up with illegal renovations. I do not like the house very much but Love the location(will keep it secret).

I really need some advice so thankyou to anyone who can help. julie

Just 1 qeustion when yoy say you lost the deposit on the house becuase of termites do you mean 10% and did you not have subject to building and pest control?

illegal reno sounds like a good bargining chip not sure what other advice your after though...
 
land is what appreciates. remember that the reason the one on the hume highway will never change - whereas the other one's downfall can be altered.

What the hell are you talking about?
It very much depends exactly where it is, and could have potential to achieve way above avg CG depending on the zoning.
This is why you should'nt ask nor take "advice" from a forum, but for an opinion or point of view.
And make your own decision.
 
Answer (c) none of the above.

Not on a main road (generally) for an IP - a few many need the exposure for business.

Not a house with bad bones - i.e. how easy to unmess the illegal renovations?

Why not keep looking?
 
Piston - nice constructive comments there...

what i was saying, from the information given, is that two properties are below the median value. one from the location on a main road and one from the house having dodgy reno.

The location wont change - the Hume isnt going anyway. Whereas the dodgy reno can be fixed etc. so "given the choice" between two i would pick the later.
 
Answer (c) none of the above.

Not on a main road (generally) for an IP - a few many need the exposure for business.

Not a house with bad bones - i.e. how easy to unmess the illegal renovations?

Why not keep looking?
thanks everyone for helping me and I have decided to keep looking. I really have appreciated the feedback.


I am just finding the inspections expensive. thanks again.
 
I am just finding the inspections expensive. thanks again.

I assume that this means professional inspections? If so, stop getting building inspections until the property meets all your selection criteria and is on a reasonable short list.

Better still go along with a building inspection and learn what they are looking for so that you can do a preliminary inspection and make this part of the short list process.

Cheers
 
Hi Julie,

So I take it you didn't?

No main roads for me. Number 1. Rule in my book.

Regards JO

(PB - LOL as always.)
 
A quiet cul-de-sac won the day.

Hi Julie,

So I take it you didn't?

No main roads for me. Number 1. Rule in my book.

Regards JO

(PB - LOL as always.)

No I did not intend to buy it- the human psychology was amusing. When nobody wanted it I suddenly did not find it very attractive either. I felt sorry for the old lady owner being sucked into doing an auction by Hookers. Just so they could charge her for the advertising. Any fool would have known to put it up for sale and price it accordingly.

I found a lovely brick house in a cul-de-sac just a kilometre back from the Hume and I am very happy to get it. I wanted it two months ago but it was under offer and this persons finance application failed and the agent rang me and I got it for $15k less. Can't wait to mow the lawn. This forum is great for advice and reassurance so thankyou all again.
 
No main roads for me. Number 1. Rule in my book.

When nobody wanted it I suddenly did not find it very attractive either.


Without knowing the particular deal in question;

For whatever it's worth, I've done quite well out of a couple of main road properties. Sometimes, it's worth being flexible and looking for opportunity when everyone else sees a problem.
 
There is another house I can have in a delightful location but the house has been messed up with illegal renovations. I do not like the house very much but Love the location(will keep it secret).


Buy it with title insurance, and claimed from them if council call you up?
 
There is another house I can have in a delightful location but the house has been messed up with illegal renovations. I do not like the house very much but Love the location(will keep it secret).

Depending on the quality of the renovations, and the area it is in, I would not be fussed about this at all. It is quite common in some areas for owners to get work done and not notify council.
 
I LOVE auctions where nobody bids. I've picked up a few well under market in this situation.

Based on the same logic, you may find nobody bidding for your house should you choose to sell one day.

Also, how do you know it is under market?

There are generally two situations why places don't sell. Either people don't know about it (i.e. poorly advertised) or it is in fact, not worth the price.

As the saying goes, 'buy cheap, sell cheap'. Unless of course, you know it will be rezoned or is feasibly developable.
 
Based on the same logic, you may find nobody bidding for your house should you choose to sell one day.
Unlike Melbourne, auction is not usually the way in which properties are sold in this area. I would only sell private treaty.
Also, how do you know it is under market?
Based on the fact that I am an active investor and KNOW the market.
There are generally two situations why places don't sell. Either people don't know about it (i.e. poorly advertised) or it is in fact, not worth the price.

I have found that there are many people who don't like auctions. Again, this is specific to the area(s) that I invest in. In a buyers market it is not uncommon to have nobody to bid against at an auction. The few that turn up are usually other investors, so there is no emotion attached to the bidding. I have seen many homes sold at auction $30-50k or more below what a similar property would sell for private treaty to a first home owner.

There are other times where the property has not been marketed correctly, and yet other times when the agent has missed something crutial, like a property with two dwellings that can be subdivided because of the year that the second dwelling was built, or the agent does not know the area and will just rely on feedback from potential purchasers to set the reserve.
 
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