Location is important part of property investing. Choosing the right property in the right location will contribute more to the success of your business. There are many types of location you can choose to invest in. some tenants prefer to live in the buzz of big city while some others choose to live in the outskirts. If you are going to buy a property, make sure to choose the right location. And what about property located on the main road?
Purchasing property located on the main road
Buying property for investment is a big deal. You cannot do it without purpose and plan. There are many promising areas where you can find ideal property. However, it is quite challenging in real life to find the right suburb and buy ideal property. You need to consider many things to examine whether or not the property is good for investment. One of essential point to consider is long term capital growth which connects to the location itself. Ideal suburb that performs long term capital growth at steady flow is what you need to aim for. Here are things you need to know before buying property located on the main road:
- Main road is not really ideal location for you to buy a property. Just imagine living in the main road where all the buzz of passing traffic is. It is hard to live peacefully in this type of location. Of course, the lack of wide open space force people to live on the main road. However, living on the main road means you have to deal with constant noise, excessive noise. It may be fine for tenants who live alone. However, this type of property is not ideal for families. Thus, property located on the main road is not ideal for investment.
- Another thing you should know about property on main road is it has greater risk of over-development. If you buy a property on the main road, there is high chance that its surroundings will be full of new developments. It is because the business grows. It will be easier for your property value to decrease instead of increase.
- Most people would mind living on the main road due to many reasons. It leads to marketing issues you may suffer if you buy property on the main road. It is hard to advertise main road properties on the listing which causes most agents are reluctant to do it. They need to inspect the properties in order to be able to explain many things to buyers.
- Main road is considered as secondary location. During slower times, it is even harder to sell properties on main road. It is possible for you to rent main road properties. However, it is often that tenants decide to move on as soon as the lease expires. In addition, main road properties have higher vacancy rates. Your long term goal as well as rental return will be affected if you decide to buy property located on the main road.