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Not all properties are created equal. Some aspects of a property can help amplify your portfolio growth. But what are the deal breakers that might hold it back? The things you want to make sure you never buy to ensure you keep buying strong assets and leave the unnecessary problems behind. In this episode, I'll be opening up three of the major deal breakers you need to look out for when investing in property.
I'm Junge Ma, the lead research analyst at InvestorKit. Now let's get into it. So when we talk about deal breakers, the top things on our minds could be bushfire risk, flood risk, extremely small piece of land like under 300 square meters or even smaller, extremely odd shaped ones, etc. But today, I would like to introduce to you three less talked about deal breakers that we use in InvestorKit's acquisition team. The three deal breakers are one, facing or backing a busy road, two, backing a train track, and three, directly facing or very close to a cemetery.
They are deal breakers for us, not because they don't grow well in the long term. Actually, their long term value growth should be just in line with their suburbs average level. They are deal breakers for us just because they are not the most desirable properties that everyone would like. Then when you try to resell the property or when you try to lease them out, they may cause extra longer days on market and they may spend extra longer time on the market and make your selling or leasing process less smooth. So why are they not the most desirable?
For busy roads and train tracks, we can see that it could be noisy, it could be dusty because of all the cars and trains. And if you are very close by a train track, the vibration by the train could cause problems to your delicate equipment. And when it comes to cemetery, it's kind of controversial because some people, including me, myself, find cemeteries a peaceful place to walk in. But for others, they may find it scary or unlucky to be staying close by a cemetery. So as I mentioned, because they are not the most desirable property types, it may take longer for them to be sold or to be leased.
Here I have prepared three pairs of properties to demonstrate that. The first pair of properties we're looking at are two from Townsville. One is along the Turingoa Drive, which is a main road. The other is in the same suburb of Kerwin, but it is far from that main road and is in a very quiet block. They are both three bedroom, one bath and two car park houses.
They were both sold in the beginning of 2023. And if we look at their sales record, we would see that the property just next to the busy road stayed on the market for 198 days, while the other property, which is in the quieter block, it was on the market for just three days. This comparison might be a bit extreme. The 198 days could be contributed by the timing it was listed online because it was listed on the 8th of November 2022. That's the end of the year when markets started to become quieter.
But even if we consider the timing of its listing, 198 days still seems a bit too long to justify. And the second pair I'm going to show you are two properties in the Victorian city of Bendigo. Suburb name is called Quarry Hill, and there is a large cemetery in this suburb. So our first property is just next to the cemetery, three bed, two bath, three car park. And it was sold November 2023.
The second property is far from that cemetery. It was sold in March 2024. Again, a three bed, two bath, two car park house. So two houses are similar. The only difference is in their location.
So I'm in the RP Data page for the first property. As we can see in this map, cemetery is here and our property is just one or two lots from that cemetery. In the end of 2023, when it was sold, the days on market was 260 days. I know in 2023 and 2024, Bendigo wasn't a hotspot. The market was really quiet at the time, but 260 days on market, it's too much longer than the suburbs average.
And now let's go to the second property, which is far from the cemetery. If we zoom out a bit, we'll see that cemetery is here and our property is many blocks away. And when it was sold in early 2024, it was 28 days on market. And just for your information, for this suburb at around that time, the average days on market was 31. So this property was very much in line with the suburbs average.
And the third pair of properties we're looking at are from Sydney, the suburb of Blacktown. In this pair, we're going to look at their rental days on market. Our first property is just beside a train line. And the second property is, as you can imagine, far from the train line. They're both four bed, two bath, one car park houses, and they were both listed for lease recently.
Let's have a look how many days they were on the market before leased out. This is our first property. As we can see in the map, it is just across the road of this train line. And now rental record. It was listed for lease in September 2024, and it spent 46 days on market before it was leased out.
And then our second property, same suburb, but it is not close to the train line at all. If we check their rental record, it was listed for lease in November 2024, and it spent only 12 days on market before it was leased out. So that was one fourth of the first properties. Now, three pairs of real life examples have shown us that if you have a property facing or backing a busy road, backing a train track, or very close by a cemetery, you may experience extra longer time on market when you try to sell or try to lease. But I have to say that there is no perfect pattern that if the properties are like this, your days on market would be certainly extra long compared to the ordinary properties.
Because when selling or leasing, the owner or the sales agents in many cases would notice this advantage and price their property lower than the rest of the suburbs properties so that they can use this price advantage to attract enough interested buyers to make it sell or lease at the same pace as the rest of the properties. Now, facing, backing busy road, backing train tracks, or close by or directly facing a cemetery, they are the three deal breakers we are talking about today. They might be cheaper, as I said, the sellers might price them lower than the other properties, but we don't see it as a good deal, but rather we would see them as deal breakers just because of the inconvenience or extra trouble when we try to lease or resell. I hope you find it helpful. And if you have any extra questions or any comments, please comment below and we will try our best to reply to every one of them.
I'm Junge Ma, the lead research analyst at InvestorKit. Thank you for your time and I'll see you next week.
