Hi guys, would love some input on my current situation..
Currently have a budget to buy two properties at approx $550k each (all costs inclusive including reno costs). We are on good incomes, currently have 1 IP and our PPR and strategy is to purchase both properties with an aim to achieve a good capital growth in the short-medium term. One property I want to buy in VIC, where we are based, in order to cosmetically renovate and subdivide. The other I don't mind where it is - it can be anywhere in Australia as long as I can buy it below the median and expect a good capital growth.
Curious if anyone would mind sanity-checking my strategy and offering advice?
1) With the property to buy-renovate-subdivide (and sell subdivided land)-hold in VIC, I've been eyeing up a few areas particularly in regional VIC. The most promising area I've found is Geelong which has areas that seem to have good sized blocks, a healthy market for 3-4br houses (families), and good possibilities for subdivision. Thomson seems to be a good area that is gentrifying, Corio is a bit lower class but has good growth potential being closer to Avalon, and there's a few other areas I've got my eye on too. I've also investigated Bendigo suburbs too but don't see a lot of evidence that there's a market there for subdivided land (in the form of an ex-back yard, anyway) - it's more larger development sites there. The median in all those areas is pretty low though ($250-300k) so on the other hand, I'm also looking at Berwick which has a house median of something like $450 from memory and Thornbury of $660k, areas which I have seen to be showing indicators of performing well in the coming years. Buying a renovator's delight Californian Bungalow in Thorny at well below median with subdivision potential might be a pipedream though :/
2) On the other hand, looking at areas in QLD, WA and NSW for the other property. Not wanting to renovate anything interstate thanks but I'll consider a subdivision move. Inner West in Sydney (Marrickville, Dulwich Hill and areas around that light rail extension) look good.
I guess the good thing is we have plenty of equity to play with and can be flexible with the numbers, for instance buy a regional VIC place for sub $300k and something in Marrickville for $700k, for instance (okay, I can't recall the median OTOH at the moment but you get my point). I guess I'm just a bit over-analysed on the numbers and need to actually make a decision!
Ideas? Thoughts?
Currently have a budget to buy two properties at approx $550k each (all costs inclusive including reno costs). We are on good incomes, currently have 1 IP and our PPR and strategy is to purchase both properties with an aim to achieve a good capital growth in the short-medium term. One property I want to buy in VIC, where we are based, in order to cosmetically renovate and subdivide. The other I don't mind where it is - it can be anywhere in Australia as long as I can buy it below the median and expect a good capital growth.
Curious if anyone would mind sanity-checking my strategy and offering advice?
1) With the property to buy-renovate-subdivide (and sell subdivided land)-hold in VIC, I've been eyeing up a few areas particularly in regional VIC. The most promising area I've found is Geelong which has areas that seem to have good sized blocks, a healthy market for 3-4br houses (families), and good possibilities for subdivision. Thomson seems to be a good area that is gentrifying, Corio is a bit lower class but has good growth potential being closer to Avalon, and there's a few other areas I've got my eye on too. I've also investigated Bendigo suburbs too but don't see a lot of evidence that there's a market there for subdivided land (in the form of an ex-back yard, anyway) - it's more larger development sites there. The median in all those areas is pretty low though ($250-300k) so on the other hand, I'm also looking at Berwick which has a house median of something like $450 from memory and Thornbury of $660k, areas which I have seen to be showing indicators of performing well in the coming years. Buying a renovator's delight Californian Bungalow in Thorny at well below median with subdivision potential might be a pipedream though :/
2) On the other hand, looking at areas in QLD, WA and NSW for the other property. Not wanting to renovate anything interstate thanks but I'll consider a subdivision move. Inner West in Sydney (Marrickville, Dulwich Hill and areas around that light rail extension) look good.
I guess the good thing is we have plenty of equity to play with and can be flexible with the numbers, for instance buy a regional VIC place for sub $300k and something in Marrickville for $700k, for instance (okay, I can't recall the median OTOH at the moment but you get my point). I guess I'm just a bit over-analysed on the numbers and need to actually make a decision!
Ideas? Thoughts?