NSW Why isnt this property selling? 3 Lochville St Wahroonga

Discussion in 'Property Analysis' started by noviceInvestor1, 11th Feb, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. noviceInvestor1

    noviceInvestor1 Member

    Joined:
    22nd Oct, 2018
    Posts:
    24
    Location:
    NSW
    I'd appreciate your views on this property - 3 Lochville Street, Wahroonga, NSW 2076.
    This house was listed for Sale in June 2018 (with a Price Guide of 1.35m), and still on the market (> 7 months)

    I inspected it back in November:
    - the main house definitely needs a bit of work
    - GF is in excellent condition
    - Traffic noise from M2 - probably a bit too much than what most people would find acceptable (but there's works going on ... maybe they're installing sound barriers?)
    - Expected Rent is well above $1000

    The RE Agent says that the owner is motivated to sell (the GF was unrented when I inspected, which would indicate the vendor wanted to sell), and the agent has also said they'll negotiate (IIRC she said vendor was now expecting ~1.1m)

    The last time it was offered, in Nov 2014, it sold in 2 weeks for 890K (I believe that's without the GF)

    Is there anything more to it than simply - cooling market + unrealistic $ expectation + road noise?
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    2,196
    Location:
    Australia
    A soft market means any property with issues will be harder to sell. Noise (wont ever get better), a 3 bed house in an area of mainly bigger houses.
     
  3. noviceInvestor1

    noviceInvestor1 Member

    Joined:
    22nd Oct, 2018
    Posts:
    24
    Location:
    NSW
    5 Lochville Street, Wahroonga, NSW 2076

    I forgot to add - the house right next to it, No 5 (even closer to the M1) was Sold on the weekend at Auction!

    Price - undisclosed of course! that's an even smaller house, and no GF
     
  4. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    776
    Location:
    Sydney
    No 5 is way more attractive though. No 3 looks like it's been neglected for many years.
     
    WattleIdo likes this.
  5. JLK

    JLK Member

    Joined:
    6th Nov, 2018
    Posts:
    24
    Location:
    New South Wales
    noviceInvestor1 and qak like this.
  6. noviceInvestor1

    noviceInvestor1 Member

    Joined:
    22nd Oct, 2018
    Posts:
    24
    Location:
    NSW
    True, its renovated.... But, it appears to be a weatherboard construction (?) whereas No 3 is brick (both house & GF) and rendered, plus I would've thought the GF would make No 3 financially more attractive (both IP and PPOR)...

    How much would it cost to renovate No 3 to make it like No 5?

    Anyone here who know the area well enough to comment on this street/pocket...?
     
  7. Buynow

    Buynow Well-Known Member

    Joined:
    22nd Oct, 2018
    Posts:
    113
    Location:
    Sydney
    Not much appeal for an owner occupier a close to the M1, long walk tithe train station, house needs a lot of work - looks like a knockdown.

    For an investor less than 4% gross yield in a falling market isn’t appealing
     
  8. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    3,033
    Location:
    NSW
    Very few investors would look to purchase a property in Wahroonga in the millions of dollars to start with, so having a granny flat generating income is not really any great attraction, when a PI can get a better rental yield, say in W Sydney.

    Wahroonga is primarily a PPOR, OO suburb so traffic noise from the M1 and level of renovation is going to have a large bearing on the property's salability.
     
  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    9,662
    Location:
    Sydney
    The M1 will soon be mostly underground and all trucks are required (electronic camera enforcement) to use the North Connex underground link leaving CAR only (optional) access above ground on Pennant Hills Rd. The tunnel ends near that property. Noise could be an issue depending on its location. Noise will likely emit from the tunnel end and at high speed ? 110km, 100km or 80km zone ? Changing lanes and kerthunk, kerthunk, kerthunk 24/7 on reflectors. From what I see on map its a ramp for tunnel to merge AT that property both directions. All trucks will emerge and need to merge at the fence ? And either be on airbrakes as its downhill or be accelerating ?

    Map with route and current roadways :
    http://northconnex.com.au/docs/defa...ary-2017-northconnex-project-map.pdf?sfvrsn=2

    The exists for the tunnel should be better researched along with the impact of the ventilation shaft. Could be a factor. That road will only get wider and more traffic with time.

    I would agree with Alans comments re the suburb being primary residences. For those values there are better rental options and it could be a battle to find tenants willing to pay the rent for the property. Land tax would also be a high cost. Land values are in the $1m mark well above the state threshold.
     
    Last edited: 12th Feb, 2019