Freeway in the backyard for PPOR = bad or not?

Discussion in 'What to buy' started by Val2000, 25th Feb, 2018.

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  1. Morgs

    Morgs Well-Known Member Business Member

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    Whilst it might be tempting because it is cheap today, my experience with properties discounted due to issues (i.e. freeway behind, high voltage power lines, etc) are they don't grow as fast as the rest of the market. I'd say that is due to the fact that you're eliminating a large number of buyers who wouldn't want to live there.
     
    Morgs, 26th Feb, 2018
    #41
  2. The Y-man

    The Y-man Moderator Staff Member

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    Thanks.

    So let's take a "random" example ;) - 46 Roland and 57 Loyd. (Thank you @G TOWN - was going to do a search of the area, but you beat me to it).

    There are a few things at issue here:
    - 46 Roland is 600sqm (probably developable) and 57 LLoyd 766sqm (definitely developable).
    - not enough discounting (as you noted)

    The one I bought was sort of the other way around.
    The equivalent equation would be this:

    Suppose 46 Roland was 1149 sqm (1.5 x larger than 57 Lloyd) AND it was priced at $1m - I wonder if that would that change the equation? See then you start thinking of whether you can sub div, stick 3 units on it so only the rear most unit is the "freeway" one etc.....

    The Y-man
     
    The Y-man, 26th Feb, 2018
    #42
  3. Val2000

    Val2000 Active Member

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    Nice random samples I have to say :D
    I think from an IP point of view and future sub-division the equation would change but this is for a PPOR so have to let this one go.
     
    Val2000, 26th Feb, 2018
    #43
  4. Swoosh30

    Swoosh30 Well-Known Member

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    You are correct! I made a mistake.
     
    Swoosh30, 26th Feb, 2018
    #44
  5. MikeyBallarat

    MikeyBallarat Well-Known Member

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    @Val2000 can shop to his/her heart’s content at LaManna then ;) just a leisurely stroll over the Tulla!
     
    MikeyBallarat, 26th Feb, 2018
    #45
  6. Val2000

    Val2000 Active Member

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    Haha....use the discounted price saving on property to spend on LaManna!!
    Also i"m a male so you can safely use "his" next time!
     
    Val2000, 26th Feb, 2018
    #46
  7. Joynz

    Joynz Well-Known Member

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    Though being above the noise doesn't necessarily lessen it. Residents of some penthouse apartments in South Yarra have been surprised and disturbed by the sound of motorbikes etc that they thought wouldn’t be an issue several stories above street level.
     
    Joynz, 26th Feb, 2018
    #47
  8. WattleIdo

    WattleIdo midas touch

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    I don't know about noise going up so much but having the house significantly lower than the road helps (speaking from experience - lived in a house with friends about 10 houses away from Victoria Rd in Gladesville about 25 years ago). The earth blocks the noise. As do trees and other houses. Those houses are way too close for most people, I'd say. Was probably not too bad 30 or 40 years ago but now, no.
     
    WattleIdo, 26th Feb, 2018
    #48
  9. Corey Batt

    Corey Batt Well-Known Member

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    The fact that you ask the question means that others will do the same when you sell/any valuer walks through to inspect. It will be cheaper for a reason due to the reduced desirability and this reduction will remain.

    I generally suggest people stick to A grade properties - there's millions of them in Australia so why bother scraping the B-D grade properties to save a couple dollars, but potentially short change yourself ever after.

    As a side note, you may find a number of lenders may have issues with proximity to a freeway - especially at higher LVR's. This may mean they require a maximum LVR lower than standard property or may even refuse to lend for the property as they deem it unacceptable security.
     
    Corey Batt, 27th Feb, 2018
    #49
  10. MTR

    MTR Well-Known Member

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    Secondary location - negatives

    Limit your market
    Impact of sales price
    Noise?
    Dirt? Pollution?????
     
    MTR, 27th Feb, 2018
    #50
  11. Val2000

    Val2000 Active Member

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    Thanks again everyone!
    Always had that doubt upfront so letting this property go

    Cheers,
    Val
     
    Val2000, 27th Feb, 2018
    #51
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