Does Buying On A Main Road in a Regional Centre Make It Harder To Sell?
Buying on a main road should be viewed with caution. This tends to apply to both capital cities and regional centres.
Ryan: They know buying on a main road in Sydney makes it hard to sell but does the same rule apply to regional areas where a main road is like a semi-main road, two lanes.
Obviously like if you’re buying on like a freeway in Sydney, really busy traffic and things like that it can take the property longer to sell because obviously it’s not as desirable. What do you think about that in regional areas? I’m just going to try and fix my lighting for a sec.
Ryan: You go ahead.
Ben: Should I answer that question while you do? I think I will. I think buying on a main road in any marketplace should be viewed with caution.
It’s definitely one of the things that I look at as a buyer’s agent to make sure that we avoid. The reason we don’t like to buy on main roads is because generally there’s a higher percentage of investment product or renters living on that road.
Second, the owner occupy appeal of being on a main road is dramatically decreased, which means your future capital gain is decreased then.
I’ve been researching a huge amount at the moment and what I’ve been looking at is the performance of different types of products in different markets, Sydney, Melbourne and Brisbane, at different times in the last 30 years and what I’ve learned is that, let’s say that Manley in Sydney, Manley Beach has gone up on average by 10 percent per annum for the last 10 years.
There’s pockets of Manley that on average gone up by 15 percent per annum for the last 10 years and there’s other pockets that have gone up by seven percent. That’s generally related to the position in the suburb and one of the big things relating to position is being in a quiet owner occupied street.
Yeah, I don’t think it matters whether you’re buying in a city or the country, the same fundamentals apply to what people will pay a premium for in the future.
Ryan: Yeah, I would agree with that. I only heard half of it, but it sounded good.