Construction coming next door?
When buying a property you should find out whether there is construction coming next door or in the immediate area. This could impact you if you are moving in. It could also impact tenants if you are an investor.
Often whilst projects are underway, the area is disrupted. Traffic in the area can be increased and on street parking made more scarce once the development is complete.
At Buyer Solutions our Buyers Agents carefully research the surrounding area and properties immediately abutting a target property. This is part of our pre-purchase due diligence.
I wrote a Blog post last year about how I found a large development next to a property I personally wanted to buy. Completely unexpected as there was a mansion next door worth over eight million dollars. No Heritage Overlay, so it will be demolished.
Last week, we informed a client wanting to buy in West Melbourne that a seven storey building had been refused at VCAT in January this year. The interesting thing is that it was one property removed to the north of his target property at the front, however the developer had acquired the land to the rear of the property giving the site two street frontages.
The rear block was bigger and wider and directly beside the development my client wanted to buy into. Interestingly, the selling agent was not completely up to date as they weren’t aware that VCAT had knocked back the development.
Our home buyer client formed the view that “where there was smoke often comes fire”. They believe the developer will alter their plans and ultimately get something through council or VCAT.
The Victorian Government is pro-development and increase of housing supply. We need to be mindful of this when buying now.
That experience wasn’t a huge surprise in inner urban Melbourne. What we found the week before for an investor client was more of a shock. Our target property was in a quiet, well located Camberwell street. Nice rear townhouse of just two in the development.
I was checking on local redevelopment. Usually I find an extension or a 2 or 3 lot subdivision and inform my clients. This time however I find that an developer has secured ownership of several blocks of land and plans and permits have been approved for a 3 storey building of eighteen apartments with basement car parking.
Because our target property had its garden abutting the rear fence, we decided to withdraw and not to bid at the auction. The property sold at auction a few days later. That buyer has no cooling off. So, we hope they knew about the development or they are about to get a big shock.
A huge value add that Buyer Solutions offers buying clients is telling them about negatives we uncover and not buying properties.
For advice and assistance on buying, selling and renting property in Melbourne, please don’t hesitate to get in touch on 0418 101 146 or jspencer@buyersolutions.com.au
Buyers Agent, Buying property, Expatriate Aussies, First home buyers, Home buying, Housing Market, Investment property, Janet Spencer
+61 39816 8555