Buying Next to Railway

Will depend on the terrain and surrounds, I have been at places where train is virtually running past back yard & not as noisy and another place about 700+m from the line as it is elevated and nothing much between.

In both once inside you can't hear train, but that is electric only.

 

Depends on the trains that use it, and the area.
I used to live in Wagga years ago - the freight train line was bloody ages away, but because Wagga is so flat and quiet, you could still hear it coming.

My cousin lives in a complex of units right on the train line in Brisbane and when it sounds its horn, it wakes me up. Was so annoying.

My ideal number is 400-800 (with no or very infrequent freight use). Its close enough to easily walk, and shouldn't hear it much once inside (if its a well built house).

 

Rail noise is less predictable than plane noise. I have a friend who owns a great house right next to the north shore rail line in sydney. They are midpoint between two stations, on a slight curve in the track. The trains whoosh past, but there is no shunting noise minimal track noise, no engine noise. Its actually not a big deal. If you are near a station, a hill, you get engine noise, shunting etc. Also knowing when the trains are running - are their freight trains running at night (I have coal trains here in brisbane about 1km away and I can hear them at night).

The best solution is to get some noise monitoring done. That is my specialty and you can now get a couple of weeks worth of noise monitoring for less than the cost of a building inspection. For a property like the one you were considering, it would be a great investment.

Stuart Clough Noise#Net

 

probably possible to significantly cut back on the noise by putting in double glazed windows, thicker insulation to cut back on the sound, etc.

Guess for residential there's still gonna be the idea of it been next to a train track which isn't appealing.

When I was a buying a PPOR i avoided anything too close to the rail roads as i despised the new trains that tasrail implemented and i ended up moving like 20km+ away from any rail way lines.

I'd probably avoid it in all honesty UNLESS you can get a SIGNIFICANT discount on it, but like others have said, be prepared for high tenant turnover and munted CG.

Maybe look elsewhere, I'm sure something else better will come up.

 

I've never been living next to the railway but I had lived in an apartment that is next to tram track in Malvern East (VIC). That apartment is fixed with double glazed windows and the landlord has done amazing work with isolation that I didn't even hear a tram coming or going once doors and windows are closed.

Agree that train makes much more noise than tram, but if the price is reasonable, you can consider to install some sort of isolation to mitigate the noise.

 

Double glazing and closing doors and windows is a pretty big copout. I think your always going to struggle that bit more with capital growth and yield. The only speculative benefit is rezoning for higher density if the property is also to the station.

 

http://www.news.com.au/travel/trave...a/news-story/dc3f1dd17265f935e4ff86f63a02fe80

How's this for proximity

Most close to major road/railways properties are bought for less and sell for less. But if the above is true regarding tenant turnover, I would do my best to pay more for a place with less vacancy risks.

 

I have Steamranger right next door to me.

 

If it was nearly anywhere else in the world I'd think that was a joke. But it's China....

 

We bought a place next to train line in a suburb we otherwise couldn't have afforded in Melbourne. Definitely more difficult to rent out because tenant pool are smaller. Having said that looking back, we would have bought it again. Smaller entry point meant smaller repayment and better yield. Getting like 3% yield as opposed to suburb median of sub2%.

 

We bought a place next to train line in a suburb we otherwise couldn't have afforded in Melbourne. Definitely more difficult to rent out because tenant pool are smaller. Having said that looking back, we would have bought it again. Smaller entry point meant smaller repayment and better yield. Getting like 3% yield as opposed to suburb median of sub 2%.

 

Ok, I'll add one...
We bought a property (2 bed/2bath unit) near a Melbourne railway, actually, less than a 2 minute walk to the train station. Settled in January. Current yield is 5.45%, whereas the current yield for units in the suburb is sitting at 3.8%.

 

100% agree
If your buying an investment next to a railway just make sure its in a decent suburb. You'll get in at a lower entry point and therefore your yield will be better than average - rent is fairly inelastic
The argument that you will stuff your chance of getting capital gains is completely flawed - if its an ok suburb then it will be always sought after for people who couldnt otherwise afford the area. Its likely to tick over at the same percent as the rest of the suburb. Yes it will always be cheaper but you did pay less for it at the start so who cares!
FWIW we bought this shambolic dump a few years back 36 Victor Street, Birkdale, Qld 4159 - Property Details
Its right next to the railway line, we put a lot of work into renovating it and have had the same tenants for 3 years. The noise doesn't seem to worry them...

 

Interesting article from a few days ago on re-zoning around train stations in Sydney....

As an owner of a house 100 metres from a train station I particularly like the comment from the planning and housing minister:
"I want everyone to be winners in this," he said. "If you are going to get your house bought, or you want to sell your house because you actually live near a railway station… I want this to be, and this government wants it to be for those people, to be like winning the lottery."

'This is a crisis': NSW government's plan to fix housing

 

I think you relatively easily get used to usual noise & either block it out or don't even hear it. Its more the unexpected incidental noise that gets your attention (well at least it is for me).
I rented a place many years ago for many years that was on a Melbourne suburban train line.
On a rare weekday early morning off work, if you had awoken me & asked "How many trains have gone past in the last hour either way?" I honestly wouldn't know as I'd been asleep through all of them.
But if instead you had asked have the garbage bins been emptied? "Yeah the Garbo's woke me up, it was 6:18am when I looked at the clock".
It was exactly the same for me when I once lived on a busy Main rd. Never heard the traffic, but an occasional barking dog or the neighbours car starting up was enough to wake me.

 

We purchased 2 houses side by side, rail at the rear, Broadmeadows, Melb, paid $597K for the 2 and sold it with a DA/plans and permits (8 reverse living units) for $907K 12 months later to a builder.

But to be perfectly honest I purchased these properties site unseen, if I had actually viewed them I would never had purchased, call that one dumb luck

 

Don't forget that there are a lot of train spotters out there, so it might turn into a boutique investment...

 

Right, I will remember that

 

I live a block away from the railway line and woke up v. early this morning with the freight train going past. I forgot I lived so close. But I like that noise anyway.