QLD Prperty next to a Petrol station

I am considering this property , but I keep getting negative feedback from friends I ask, as it is next to a petrol station, except noise, is there anything to be worried about ?

 

I'd avoid it.

Valuer will apply discount to property.
Tenant will perceive security and traffic issues

 

Noise
Oil contamination
Explosives (gas) stored on site
More likely to have security issues
Zoning changes
Near busy road

House desperately in need of major renovation

Just a few I can think of, on the top of my head.

 

Ground water/soil contamination.
Fumes

 

As residential investment, I'll surely avoid it.

However, being next to fuel station, I am assuming it's on busy street or main road?

If yes, worth checking with council if it could be used for other purposes such as medical precinct bla bla and do your calcs based of that...

But as residential investment, 100% NO GO i'll say..

Able to share link of the property?

Cheers,

 

thanks for the feedback, the only attraction for me is 800 M2, with 2 lot, and the asking price is 600K, which is cheaper than the median for that suburb ?

 

9 Edinburgh Castle Road, Kedron, Qld 4031

 

I would look into it
Could be a fantastic buy ...if you change the use ..develop for a fast food store like McDonald's ..ideal being next to a service station
Do your DD

 

Looking on google maps, Edinburgh castle road doesn't seem to be that busy (but worth checking by visiting). It's the Gympie road i'll steer clear off..

It's on two lots which is awesome..

Area is not bad..

Fuel station shouldn't be of concern in this case ...

Did quick online valuation and it seems to be priced right too ..




House surely requires some cosmetic work which shouldn't cost a lot unless building and pest inspector finds some structural or other issues..

Lot of things in it's favour.

I'll surely consider it now that I have seen it on the maps!.. But please do your own due diligence..

 

When you look at the satellite picture it doesn't look as bad as it sounds. It is at the rear of a service station.
Assuming you redevelop and build units. I would only buy a unit in a similar location if it was at a substantial discount to rest of the suburb or it got me into a desirable suburb or close to the beach for a good price for the area.

 

Need at least 2000-2500m2

 

"Assuming you redevelop and build units. I would only buy a unit in a similar location if it was at a substantial discount to rest of the suburb or it got me into a desirable suburb or close to the beach for a good price for the area"

I am a FHB, I intend to live there

 

Sure, it's cheaper. That does not mean it's good value.

 

Ask for an insurance quote or two.

If you personally dont mind the petrol fumes and the risk of an explosion nearby, then keep researching it. It cant be any worse than living in Mumbai. Select another house across the road/next door that has changed hands in the last ten years and check its sales history to find out whether properties in this vicinity are valuing at the same growth rate as the suburb median, even if coming from a lower cost base. Even if they do grow at the same rate, you would make more money in the long run buying a higher priced home back from the main roads.

IF you buy it, please dont waste any cash on over-capitalising the house.

 

I would listen to your friends,
Edinburgh Castle road is fairly busy and Gympie Road is very busy.

other than noise id be concerned about a few other issues that you should look into yourself,

The Site has overland flow.
The Site has state designated noise corridor overlays.
Falls under an industrial Industrial amenity investigation area.
The dwelling is pre-war and looks to be too large to shift over to one side limiting the benefit of being on two lots.
The property is zoned CR1 (Character Residential), meaning restrictions around what can be don here but you would need to talk to a town planner.

It is priced a lot cheaper than the median house price for the area because it is vastly inferior to the median property for Kedron.

Overall the growth will be subdued for this property although the good suburb may drag is up , I think it will still be a poor performer.

I don't mean to sound doom and gloom about it, I just think you could get a much better-performing property for your budget.

 

Tanks usually leak from Petrol Stations. Soil and groundwater would probably be a little dodgy.

 

Um, sorry but you do realise that the 2 lots is of limited value as the house is pre war. BCC is very strict. Reno is expensive. Partial demo and slide over will likely be non feasible and even then council is v strict of cutting off any part of the gable or deck of these qlders..

I will b blunt. A lot of inexperienced investors get sucked into Main road, incorrectly zoned, poorly located properties etc based on LARGE LAND SIZE OR LOW PRICE. This is pure re sales spiel

So it is not good as a residential investment . High outgoings, subdued growth, no development potential and low yield.

Plan b - to turn it into commercial is NOT STRAIGHT FORWARD and you will still get crappy rent being next door to a petrol station. Plan for high holding costs and a long vacancy while you Reno and lodge DA, go to impact assessment, infra charges, car parking, storm water assessment, turning point and engineering assessment, disability access, compliance with modern building code. It’s literally a hornets nest once u start.

I would avoid. Cheap houses stay cheap for good reason.

I Would also get a good town planner before you embark on any other purchases. Ken Burmeister from east coast surveys in Brisbane is wonderful and helpful
[email protected]
‭07 3823 1029‬

 

thank you guys, we made a second inspection and it seems the cost of renovation will be quite important.

 

I think the fact that you have to ask this question is enough to adhere to the old adage: "When in doubt, chuck it out..."