Are properties facing main roads bad?

I've been reading (both here and in general) about how buying property on a main road is bad. Just wondering if anyone has any experience with issues like the noise level (do glazed windows help?) and resale value?

By main road, I'm referring to those typical 60km/h "high streets" which cut through a few suburbs, but aren't major thoroughfares or city-bound commuter routes. (If you're familiar with Melbourne, it would be those north-south roads in eastern suburbs which extend about 10-15km)

At inspections, I can definitely hear the traffic indoors in some of those properties, although I haven't been to any with glazed windows, so I don't know if it'd make any difference. I've noticed they seem a bit cheaper than the ones tucked into side streets, even a few houses down, I guess for a good reason?

 

hmm...

I really want to say yes and no.

On the one hand there is a price point for everything. And some ppl may like the background noise. Maybe if you have an agent, you can ask them the rental difference on those vs the backstreets? and then look at the glazed window costs? Are you the sort who can DIY?

If you are worried personally though, I suggest move on. There's lots of IPs available.

 

I may not like the suburb but you won't find a bargain on Hastings Street, others would be Barrenjoey Rd, Ocean Avenue, New South Head Rd etc.

 

Recently saw a property sell on a very busy part of a main Rd. I was sure it would sell for a crappy price. Sold for a strong price . I Asked agent why and he said buyers didn't mind the location or constant noise....

 

There are opportunities that main road properties can provide that ones in quite cul-de-sacs could NEVER EVER provide and it has the potential to make you an instant millionaire.

There is a misconception around here from so called property gurus to avoid main roads. That in itself is the viewpoint of ppl who don't understand the opportunities that some can present.

 

If it's a PPOR, my other worry is whether traffic fumes could cause any issues. Although in most eastern suburbs I'm not sure if there's much difference between a main street and a side street 3-4 houses from a main street?

Thunderstrike, what sort of opportunities would there be? Do you mean in terms of adding value?

 

I had the avoid main road mindset as a passive investor - in hindsight it is amazing how much stronger the performance of strategically located sites on main roads have been after rezoning sweeps through!

Not a strategy for everyone though.... plenty of areas still have underperforming assets (low yields) on the main road so you want to know what you're doing and have some well founded assumptions around the future with this strategy.

 

I avoid anything on even a slightly main road if it's to be my PPOR. For an investment, however it would depend on price point and how close to amenities etc, and potential rezoning it is.

 

You need big pockets though.
Landbanking and collecting adjoining lots over time for development opportunities great money can be made.
Personally for a PPOR I'd pass

 

Some real estate agents target main roads with their letter drops simply because they are expected to sell more frequently. e.g. If you are concerned about safety, noise, pollution, car parking, being able to easily get out of your driveway, neighbouring properties becoming large developments, etc, you might get sick of living there sooner than the usual reasons people move.

 

@Simon Hampel is right. We bought a PPOR on just such a main road. Not an official 'main road', but a defacto one given it was very long and cut across multiple areas. It was 50km/h, though with it being long straight road with inclines, the reality is people are going 60km/h. And big trucks are going to use it.

I absolutely couldn't stand it. Never felt at peace. There was a constant 'stressful energy' in the background. We bought in cheap to the suburb. Upper North Shore. The market then boomed, and in a boom, people overlook everything. I couldn't wait to sell it, and we made huge gains on it (65% 3 yrs). So bottom line is, busy road locations are going to be a lot more cyclical. Usually penalized, but come boom-time, penalty may shrink substantially. Although that was a financial win, I avoid such locations completely now, IP or PPOR.

 

May have been true once that lots of IPs were available, but yeild compression, compounding high costs , regulations and lending restrictions has created a dearth of suitable IP's. I would be lucky if I saw one every 3 months. Not long ago you could see 3 in one day. For some properties being on a main road can be much more desirable.

 

In boom markets people will buy anything. In declining markets people will avoid those propeerties and chase quality and liquidity can be a problem. The way to sell them is dropping price.
I would be cautious about making assumptions based on recent property market FOMO..

Ask any REA and they will tell you that 2/3rd of buyers wont even look at noise impacted or major road property. It doesnt need to be a main road. Things that can impact property attractivness can include bus stops outside, red X'g , schoool zones, hill descents for truck braking, proximity to moptorways gfor night noise, peak hour traffic build up, speed humps, roundabout obstruction, no right turns and more. All common to more high traffic routes than say a quiet culdesac where its always quiet and private use.

 

I have heard people who press for traffic management on their street and then get it in the form of speed bumps or chicanes regret it. I also admit that when I see one of those chicane type things I sometimes speed up to spite it.

 

The worst is traffic lights. There's an apartment down the road from me where there's a balcony that overlooks a traffic light, it's probably no more than 3 metres from their bedroom window. Imagine the beeping sound every 3 mins. I live about 200 metres away from it and on a very quiet morning (3-5am) I can hear it from my house. I can't imagine what it's like for them.

 

I attended a council meeting where council mentioned this issue. Apparently many people speed and lock up brakes etc. Traffic calming measures often are better at slowing average speed down.

My local council at present is also leaving massive potholes unfilled which is VERY good at removing cars off the road.

 

Ultimately going to be a trade off - these properties will be cheaper to enter into a suburb and in some cases may be the only way to not have to compromise on suburb. But one thing to consider is, if you are asking the Q now, that same question is going to be asked by future buyers when you try to sell.