How would a brothel next door affect your property values?
A while ago, I noticed a small property that I’d looked at several years ago was up for sale again. It’s on a side street, one section back off the main road and close to the CBD. Could be a good buy. I wasn’t planning on buying it but it’s one of those mental notes us property investor addicts make as we drive around town. Imagine my surprise when I passed by a few weeks later to see that someone had moved a brothel next door called the “Happy House” into the house on the main road corner section. A quick glance down the side street gave me the shivers… the house I’d seen for sale next door had a SOLD sign on it.
Some unfortunate person had just bought a home or a rental with a brothel next door. A brothel that hadn’t been there when they had signed the paperwork only a few days or weeks earlier. As it happens, a property valuer friend of mine had his offices in the house that is now a brothel. Ironic isn’t it? Who says property valuers can’t affect property values!?
The local paper has written an article on the situation and reports that locals living in the immediate area are not at all happy! You can’t blame them really. I’m sure the parking area at the rear of the house adjoining the neighbouring properties can be quite a busy thoroughfare, frequented by trenchcoat-wearing, heavy-breathing older men between the hours of 6am and 10pm. Apparently, there are limited opening hours imposed by council, so at least the neighbours are not affected by patrons visiting at all hours.
How would a brothel next door affect property values?
The residents in the area aren’t the only ones complaining. According to the Northern Advocate report, local business owners are not keen on the business moving in either. Imagine trying to rent a nearby house or commercial premises with this publicity? No chance! There are a number of small businesses in the area, many of the right across the road from the brothel and I doubt they are thrilled at the view across the road. This is not a subtle brothel. It has flashing open signs in the windows and a roadside sign – “Happy House”, with two female sihouettes and a lipstick print. Classy.
Perhaps honesty would be the best policy? To Let… small house, close to the CBD with a brothel next door. It might work? Or perhaps it’s best to approach the brothel itself, trenchcoat in hand and suggest the employees may like to live close to work? In tough economic times, I hear that brothels do quite well. If you can’t beat them, join them!
