Property commentator calls BS on long-standing property myth

“I hear this old wives’ tale, this property investment myth, on a weekly basis. I’m calling b******* on people saying there has to be a train station in the suburb for a property to perform,” Ms Porter said.

“Just because a house is near to a train station does not mean that proximity to this amenity will dictate the value or performance of the investment.” 

For example, some of Sydney’s most expensive suburbs such as Rose Bay do not have any train stations, Ms Porter pointed out.

“How does that work? Firstly, you probably don’t need to worry about a train station in the suburb when you can afford to chauffeur the kids,” she said.

In these affluent locations, obviously location to other amenities and facilities such as beaches, views, Sydney Harbour and access to schools is paramount to purchasers.”

Cherrybrook is another example of a suburb lacking a train station, which sees high levels of popularity due to its proximity to schools.

“Buyers there are not worried about access to train stations; there’s buses that take their kids to these popular and well-performing schools,” Ms Porter said.

It is not just Sydney property that needs to be wary of this myth either, but other major capital city property markets.

“Recently, I presented a Sydney-based client of mine an investment property within 25 minutes of the Adelaide CBD,” Ms Porter shared.

“They came back with concerns that it would take over an hour to commute via public transport into the city to which I responded: ‘It’s Adelaide. People don’t catch public transport, they drive. It’s 20 minutes to everywhere. The parking is cheap and a lot of offices have their own parking, and a lot of the street parking is free.”

Ms Porter also pointed out Melbourne property sees popularity around its tram network, while Brisbane’s busses feature tunnels and bus-only lanes.

Those suburbs close to train stations, Ms Porter warned, are also shaped by them.

“The Department of Housing has built a lot of their properties around the train stations in years gone by, so you’ll see a lot of those 60’s and 70’s style units around train stations,” she said.

“The Department of Housing knows that when they’re dealing with a socio-economic demographic that are often struggling with employment and risk of homelessness, occupants often don’t have vehicles and cars because it’s just not in the budget. So, their residents will need to be accessing public transport.

“And let’s get real. Kids and teenagers like to hang around train stations getting into trouble, smoke cigarettes and carry on with their mates because that’s where they get away with it and you don’t necessarily want to live on top of that.”

When it comes down to it, Ms Porter said the local amenities should be a priority, as well as determining what the main mode of transport is for those living in the area; it may not be trains.

“You have to look at what suits the demographic and what the market needs. In some areas, people will pay a lot more to be in the school district as opposed to the train network. Many people don’t want to be in the train station areas because it does bring the riff-raff,” Ms Porter said.

“If you’re investing, cross that one off the list and get to know the local market and find out exactly what type of transport they want and need, and make sure you aren’t doing something entirely different.

“Don’t assume you have to be near the train station.”