NSW House facing laneway - bad investment?

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)?

 

You're not investing, you're buying a home. Do you want to live there?

 

@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.

 

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.

 

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

 

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 ?

 

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.

 

Not that you can actually walk down Downing St as a member of the public - its all barricaded off!

 

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?

 

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."

 

'Muggers Lane' was more like a grand boulevarde than the Town Square behind the Scentre in the Druitt.