Grading Residential Property - A, B, C, D

When I started buying/investing in the US I was sort of surprised how they grade property, these are the categories.

SFH (Single Family Home) investing and grading properties USA Style -

A = very nice areas probably too nice to be profitable as rentals.

B= the kind of neighbourhood want to own rentals, nice blue collar homeowner areas.

C= Viable rental areas where there are landlords buying but would want to own there. Some boarded up properties, mostly rentals with some homeowners that have lived there forever. People sitting of the front stoop during the day because they don't have jobs. Few cars because people can't afford them.

D= War Zone, wouldn't even be confident of finding a buyer for a wholesale deal here.

Interesting some of the Spruikers selling US properties to foreign investors, were selling C and D grade properties, for A/B grade prices, and investors around the world were buying by the bucket load.

Imagine if we used this method in Australia not sure it would work here?

I don't think we would have "D" category in Australia??


MTR

 

Don't the bank do something similar based on their lending levels?

 

I doubt you would get a bank finance for D category and then again these homes probably worth very little.

 

D= Daveron Park.

 

wow, I assume SA?

 

Not that bad, bit of sarcasm.

 

Is all about perspective? Someone's 'D' might be another investor's 'B'.

 

I guess
Thankfully in Oz we don't have areas that are war zones ie Detroit, where pm carry guns....

 

Using that criteria I don't think there are many/any 'D's in Australia.
Palm Island or somewhere like Aurukun spring to mind though, they are probably some of the closest examples of disfunctional 'D's I could think of.

 

D would be any property that all local PM's will not take on as a management. It may not be a suburb but a section of a suburb.