NSW House facing laneway - bad investment?

Discussion in 'Where to Buy' started by Lin S, 17th Jan, 2020.

Join Australia's most dynamic and respected property investment community
  1. Lin S

    Lin S New Member

    Joined:
    17th Jan, 2020
    Posts:
    2
    Location:
    Sydney
    I'm looking at buying a house in Annandale (only 5km to Sydney CBD). The house is brand new and very large. The only negative is the front of the house faces a laneway (along with a few others) so it doesn't have the best street appeal. The view is currently the back of a commercial property's roller door. On the upside it is a premium suburb, close to parks, transport and shops and super close proximity to the Sydney CBD.

    Should I invest in this as my PPOR or do you think growth will be hindered by the street appeal (or lack thereof)?
     
  2. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,573
    Location:
    Sydney
    You're not investing, you're buying a home. Do you want to live there?
     
    The Y-man likes this.
  3. Lin S

    Lin S New Member

    Joined:
    17th Jan, 2020
    Posts:
    2
    Location:
    Sydney
    @spludgey - a PPOR/home is still an investment. I will be living there with a view to converting it to an "investment property" in the future and renting it out. I'm looking at capital growth potential while I live there so that I can unlock equity for other investment purposes.
     
    Lindsay_W and Rugrat like this.
  4. Rugrat

    Rugrat Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    314
    Location:
    Australia
    I cannot answer your questions sorry. I don't know the market there well enough.

    But I do agree that even though its a PPOR, you really should look at the property much the same as an investment, in terms of resale or rental potential, etc. It's still an investment, just a different kind. Our new PPOR we recently bought is supposed to now be our 'forever' home. But I still considered what kind of investment property it before we purchased. You never know how plans might change in the future, and you dont want to end up losing money because you didn't consider something just because it is a PPOR.
     
    Tom87 and Lindsay_W like this.
  5. croseks

    croseks Well-Known Member

    Joined:
    9th Oct, 2018
    Posts:
    184
    Location:
    Melbourne
    I dont know that market well enough however just consider this:
    - You seem concerned about the current street appeal, that means future buyers will have the same concerns as you.
    - If you can live with the negatives, use it as a negotiating tool. If the value of the property does not reflect the situation then you are over paying, however if its priced in, then it will also be priced in into the future (future buyers will pay less then your neighbours around the corner with a better street appeal) This doesn't mean its a bad investment though...

    Hope that helps somewhat :)
     
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,124
    Location:
    Sydney
    No 10 Downing Street Westminster is in a laneway

    Depends on the street appeal and its appearance. If its a skanky drug dealer lane then it could be a issue. But if it enhances the charecter of what is clearly inner city living it could be fantastic eg Melbourne Little Bourke St.

    The market price will factor in the desirability v's others which may have better appeal. Worst house in the best street rule may apply ?
     
    Ace in the Hole likes this.
  7. Ace in the Hole

    Ace in the Hole Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,580
    Location:
    Sydney
    Exactly, all laneways are not equal.
    Our current PPOR is in a laneway and we are very satisfied with it, nice and quite, very clean too.
    The frontages are basically all garages and not much else, quite unappealing if you only care about house frontages/street appeal.

    All show is not always the best in the end.
    It's what's behind the frontage that really counts.
     
  8. Hamish Blair

    Hamish Blair Well-Known Member

    Joined:
    29th Sep, 2015
    Posts:
    442
    Location:
    Melbourne
    Not that you can actually walk down Downing St as a member of the public - its all barricaded off!
     
  9. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    1,040
    Location:
    Sydney NSW
    Annandale is a great spot... we lived there and around there for years. The blue chip stock in the area are the (particular larger) terraces in the area. Seems most in the area love the classic heritage features. If it is brand new I'm assuming you're looking at one of the new multi-res developments?
     
  10. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,371
    Location:
    Mt Druuiitt
    I'd rather face a lane way in Annandale than a suburb like, say, Mt Dru...its out west. Unless of course you don't like walking further than your letter box to buy something not exactly legal lol.

    "Oi Mugsly, I need some ........ good thing you just walked past with that 120cm LCD with the cord dangling. Looks hot."
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,326
    Location:
    Sydney or NSW or Australia
    'Muggers Lane' was more like a grand boulevarde than the Town Square behind the Scentre in the Druitt.
     
    datto likes this.