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Would you buy an IP next to an industrial area?

Discussion in 'General Property Chat' started by Catalyst, 12th Dec, 2015.

  1. Catalyst

    Catalyst Well-Known Member

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    The IP itself is pretty decent. 4 x 2 in a good suburb. 12 km from Brisbane CBD. Has good rental potential. Nice street with mainly owner occupiers.

    But...

    You can see the industrial buildings which is a street away. Light industrial, I think. No factories.

    Personally I won't buy it if it was for my PPOR. Not sure if it's a show stopper when I want to sell it next time, in let's say 20years time.
     
  2. datto

    datto Well-Known Member

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    Go door to door to as many houses in the area as you can. Find out how many people have had cancer. If the number is way above the national average then never live there.

    Look, for an IP, I'd buy it even if it was located inside an industrial chemical estate where all the workers were bald and had bulging eyes. So long as the price is right. It comes down to the price.
     
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  3. Catalyst

    Catalyst Well-Known Member

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    Hahaha. Guess you don't worry about the future sell price, @datto :p

    What is the right price for you? What criteria do you use to evaluate?
     
  4. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

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  5. D.T.

    D.T. Specialist Property Manager Business Member

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    Can you hear it or smell it from the property? If yes to either then I wouldn't proceed.

    If its light industry in a different street it's probably ok though. I wouldn't want to be across the road from it.

    Remember not to base it on your ppor. I wouldn't live in any of mine.
     
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  6. larrylarry

    larrylarry Well-Known Member

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    Acacia Ridge?
     
  7. Azazel

    Azazel Well-Known Member

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    I had a look at a dual occ in Sunnybank, opposite semi-industrial.
    Not for me.
     
  8. Chilliblue

    Chilliblue Well-Known Member

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    If you are having doubts then so will a potential tenant or purchaser
     
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  9. Catalyst

    Catalyst Well-Known Member

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    Apparently renters don't mind. Agent said there were interest prior to owner deciding to sell.

    Not sure about the future sale though:(
     
  10. Catalyst

    Catalyst Well-Known Member

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    Will have to find out that. Not sure whether can hear or smell.

    The IP is not across the road. That would have been a straight NOPE :p

    Thanks @D.T.
     
  11. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

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  12. Scott No Mates

    Scott No Mates Well-Known Member

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    Heavy industrial = 24/7 operation, heavy manufacturing, noise, noxious fumes etc.

    Light industrial = small service businesses, warehousing, fabrication (eg timber joinery, cabinet makers, blind assembly etc), larger office component, 7-5pm small operators.

    General industrial fits between the two.

    I prefer general industrial as it allows a wider choice of tenant (reverse my argument for a residential investment).

    Light industrial is less of an issue.
     
  13. Catalyst

    Catalyst Well-Known Member

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    We decided not to go for it. Vendor received another offer.

    Thanks for all your input.
     
  14. sash

    sash Well-Known Member

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    Here is a valuable lesson...I learnt...in the mid to late 90s you could have bought in Mayfield in Newcastle for 80-90k....I did not buy as it was next to heavy industry. My have things changed...now it is more like mid 3s.
     
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  15. Biz

    Biz Well-Known Member

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    Close to work, one for the astute investor!
     
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  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Carrington looked cheap in the late '90s too - a decent run down workers cottage would have set you back about the same.
     
  17. Johann @ Hybrix

    Johann @ Hybrix Well-Known Member Business Member

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    I have no issue in buying investment properties next to industrial estate.
    In Melbourne I know allot of people who have done well who have bought properties in Footscray, Lavernton and Dandenong.
     
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  18. Wall Street

    Wall Street Well-Known Member

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    I have a couple near (and even directly opposite) light industrial in dandenong. Yield is great and no issues letting it out. Just a matter of buying well, in case I take a hit at resale time.
     
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