Q & A January 2012
Question: Is there any truth to the idea that buying the worst house in the best street is a good investment?
Answer: In the current real estate environment where more and more buyers are looking to play it safe, buying the ‘worst house in the best street’ is a great approach.
If there’s an opportunity to acquire a property that you believe you can add value to, and it is located in the surrounds of homes of a higher value, then you may want to consider moving forward immediately. You can be even more confident of your investment if the property offers a generous land component and lies within 10km of the city as these properties are always in demand from both buyers and investors.
There are many excellent buying opportunities at the moment that successful investors are taking advantage off even though they may not totally meet the ‘worst house in the best street’ criteria.
Always get a building inspection and speak to a builder and any tradesman you plan to use to ensure you know what your upgrades will cost so you can budget these into your offer.
Finally, research online and talk to your local area experts about what’s on offer in your price range at the moment. Many sellers are looking to settle as early in the New Year as possible so it is a very good time to buy property.