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Looking at houses on the street to judge the 'potential' of a property

Discussion in 'General Property Chat' started by FirstTimeBuyer, 2nd Aug, 2015.

  1. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    When you look for the potential of a house how much of a factor are the neighbouring houses and the street? Do you consider them at all? If you do what do you look out for? Do you look for an ordinary or sub-standard house on a very nice, well established street with big clean houses? Or do you look for a good suburb but a 'bad' street with the very long term view that in the long term (20 years?) as the whole suburb goes up in value this street would eventually become more gentrified?

    I feel like the sweet spot would be a ordinary or sub-standard house on a nice street as it would be somewhat more along the lines of "worst house in the best street". However taking that analogy further the "worst house/street in the best suburb" theoretically would seem like it would have the most potential albeit with more risk.

    Keen to know everyone's thoughts.
     
  2. Azazel

    Azazel Well-Known Member

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    There is some truth to most of the general sayings such as "worst house, best street". But each would need to be judged on it's merit. If you can't afford the best street, 2nd best street with an Ok house?
    It depends on a lot of things: demographics, neighbours, gentrification.
    I would definitely try to become familiar with an area and ideally visit it if possible. But don't be scared to buy sight unseen (eventually ;))
     
  3. Reno Crazy

    Reno Crazy Well-Known Member

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    I'll assume you are talking for investment properties?

    If I see burnout marks on the road, dumped cars outside houses, rubbish piled high, graffiti or sometimes public housing (in Victoria it is very easy to tell as the wire doors are very obivious with the number in the middle) it will weigh on my decision. I have and still hold an apartment where the bottom 2 flats are department of housing and it rents well, it has city views and is 100m from the train station and in a blue chip suburb.

    I think you will pay a premimum for worst house in best street and the returns might not be that good. If you are buy and hold the numbers need to work. It does depend on your plans, are you a renovator or future developer and how much cash flow you need so without going into that and just sticking to the question, I do consider street appeal as part of my purchasing decisions. I actually will chat to the neighbours and find out the neighbourhood goss to!!
     
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  4. wombat777

    wombat777 Well-Known Member Premium Member

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    Look at whether long-term infrastructure plans might lead to an area gentrifying. There are a few areas in Sydney going through gentrification now as a consequence of new infrastructure. Riverstone / Schofields / Marsden Park.

    Also keep your ear to the ground for zoning changes that are occurring.
     
  5. Azazel

    Azazel Well-Known Member

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    This can be a pretty good indication that it may not be the best street in the world.
    But 1 street over could have a good cheapie buy.