Property Myths Busted: Is the Worst House in the Best Street Really a Smart Buy?

“Buy the worst house in the best street.”

“Property prices always go up.”

“You can’t go wrong with bricks and mortar.”

If you’ve spent any time looking at property, chances are you’ve heard at least one of these sayings.

They’re passed around at barbecues, repeated online and offered up as tried-and-tested wisdom by well-meaning friends and family.

The problem is that a catchy saying is no substitute for a sound property strategy.

After more than 27 years in real estate, I’ve seen buyers make excellent decisions in all kinds of markets. I’ve also seen people buy a property because they believed one of these familiar myths only to discover later that the reality was far more complicated.

So, let’s bust a few of them.

Myth 1: You should always buy the worst house in the best street

This is one of the oldest pieces of property advice around, and I understand why. The idea is that you can improve the house, but you can’t change its location.

There is some truth in that. A tired property in a desirable street can offer an opportunity to add value, particularly if its issues are cosmetic and you buy at the right price.

But the worst house is not automatically the best opportunity.

What if the property has major structural issues, unapproved extensions, massive drainage problems or a layout that requires significant work? What if renovation costs, holding costs and unexpected repairs push your total investment well beyond what comparable homes are selling for?

Suddenly, the “bargain” may not look quite so appealing.

Imagine buying a rundown house for $900,000 because similar renovated homes nearby sell for around $1.1 million. If you then spend $350,000 on repairs and renovations, you’ve invested $1.25 million before accounting for purchase costs, interest and other expenses.

That doesn’t automatically make it a bad decision, you may love the finished home and plan to live there for many years. But if you were expecting an immediate financial gain, the numbers tell a different story.

It’s also important to look beyond the house itself. A property on a strangely angled or awkwardly shaped block may have limitations that no amount of renovating can fix. The shape of the land could affect the usability of the backyard, access to the property or what can be built or extended in the future. While you can renovate the house, you can’t change the shape of the block and that may influence its appeal to future buyers.

The better question is: Can the property be improved at a cost that makes sense for your goals, the location and the likely future market?

Myth 2: The best house in a less desirable street is always a bad buy

This is the flip side of the same saying.

A beautifully renovated property in an ordinary street can be an appealing choice. It may offer a comfortable home without the time, uncertainty and cost of renovating. For some buyers, that convenience has genuine value.

But you need to understand what you’re paying for, and what you can’t change.

A stunning kitchen won’t move a busy road. A designer bathroom won’t remove nearby industrial noise. Beautiful landscaping won’t necessarily overcome an awkward location or limited buyer appeal when it’s time to sell.

That doesn’t mean a property with a compromise should never be considered. The question is whether the compromise suits you, whether it is reflected in the price, and how it might affect future demand.

The better question is: Am I paying a premium for finishes while overlooking a problem that future buyers may also notice?

Myth 3: A bad property will become a good property when the market rises

This one is close to my heart.

I often hear people say, “It doesn’t really matter what you buy the market will go up eventually.”

But here’s the truth: a property with serious drawbacks in a slow market can still have those same drawbacks in a strong market.

A rising market may lift its price, but it can also lift the price of better-quality properties. The noisy road, poor floor plan, lack of natural light or expensive owners corporation issues don’t simply disappear because buyer confidence has improved.

When the market is strong and stock is scarce, buyers may be more willing to overlook these things. When the market slows and there are more options available, those same buyers can afford to be choosier.

That is often when the difference between a property that was easy to buy and one that is easy to sell becomes clear.

Of course, every property has a buyer at the right price. But that doesn’t mean every property will perform equally well, attract the same level of competition, or suit your long-term goals.

The better question is: If buyers had plenty of choice, would this property still stand out for the right reasons?

Myth 4: You make your money when you buy

There’s an element of truth here. Buying well matters, and paying too much can put you on the back foot from day one.

But getting a property below the asking price doesn’t automatically mean you’ve made money.

Imagine a property is advertised for $850,000 and you negotiate it down to $800,000. You might feel like you’ve saved $50,000 but what if comparable sales suggest it was only worth $760,000 in the first place?

Equally, paying the asking price for a well-researched property isn’t necessarily a poor decision if the price is supported by the market and the property suits your needs.

The advertised price is part of a marketing campaign. It isn’t a guarantee of value.

The better question is: What are comparable properties actually selling for, and how does this one compare?

Myth 5: A property is a bargain because it has been on the market for a long time

A property that has been sitting on the market can create an opportunity but it should also prompt questions.

Has it been overpriced? Was the marketing ineffective? Have previous contracts fallen over? Is there a condition, location or title issue that other buyers have discovered? Or is it simply a good property that hasn’t yet connected with the right buyer?

There can be perfectly reasonable explanations, and time on market alone doesn’t tell you which one applies.

I encourage buyers to investigate before assuming they’ve found a hidden gem. Sometimes a property is overlooked. Other times, the market is telling you something worth listening to.

The better question is: Why hasn’t this property sold, and are those reasons acceptable to me?

Myth 6: Renovating always adds more value than it costs

Property TV shows make renovations look exciting and sometimes they can transform both a home and its value.

But spending $100,000 on a renovation does not guarantee that a property will be worth $100,000 more.

Buyers may value the work differently from the owner. The renovation might be too personal, poorly executed or out of step with what buyers expect in that location. Expensive repairs to wiring, plumbing or structural issues may be essential, but they won’t always create the visible “wow factor” a buyer is willing to pay extra for.

There’s also a difference between renovating for profit and renovating for lifestyle.

If you create a home that works beautifully for your family, the enjoyment you get from it matters. Just be clear about whether your goal is to improve your life, improve your resale value or achieve a balance of both.

The better question is: Who am I renovating for, what will the work cost in full, and what is it likely to achieve?

Myth 7: The more bedrooms, the better the property

A four-bedroom home isn’t automatically a better purchase than a three-bedroom home.

How those rooms work matters. Is the fourth bedroom genuinely usable, or is it a tiny converted space with no natural light? Does the floor plan flow? Is there enough living space, storage, parking and outdoor area for the people likely to live there?

A well-designed three-bedroom home with generous living areas and a functional layout may appeal more than a cramped four-bedroom home where every available corner has been turned into a bedroom.

The same thinking applies to apartments. An extra bedroom might look impressive on paper, but natural light, privacy, building quality, owners corporation costs and the usability of the space all matter too.

The better question is: Does the property work well for the people who are likely to live in it?

Myth 8: You should wait until you can time the bottom of the market

Everyone would love to buy at the lowest point and sell at the highest. Unfortunately, the bottom of the market is usually much easier to recognize in hindsight.

While you wait for the perfect moment, prices, interest rates, your borrowing capacity and the available properties can all change. On the other hand, feeling rushed into buying because you’re worried about missing out can lead to an expensive mistake.

I’m not suggesting anyone should buy before they’re ready. Your financial position, confidence in your repayments and personal circumstances must come first.

But if you are ready, it can be more productive to focus on finding the right property, understanding its value and buying within your means than trying to predict the exact day the market will turn.

The better question is: Am I financially and personally ready, and does this property make sense for my goals?

The truth about property advice

Property is rarely as simple as a rule that fits neatly on a bumper sticker.

The right purchase depends on the property itself, its location, its price, your budget, your timeframe and what you want it to do for you.

A renovator can be a fantastic opportunity or an expensive headache. A beautifully finished home can be worth paying for or distract you from issues you can’t change. A property in a rising market may grow in value but that doesn’t mean it was the best property you could have bought.

My advice? Be curious, ask questions and look beyond the clichés.

Because a good property decision isn’t about following the loudest piece of advice in the room. It’s about understanding what you’re buying, why you’re buying it and how it fits into your bigger picture.

At The Property Effect, we help buyers look beyond the surface, assess the opportunities and risks, and make informed property decisions with confidence.