Buying another IP in the same suburbs ?
- Thread starter albertwt
- Start date
Wish I'd bought more than one of a few of mine. My unit in Elizabeth Bay has gone up $100K in 3 years (that's 50%). I'd have bought the whole block. Hindsight's a great thing. Although I knew it was under market. I would have bought another at the time if I could have got one at that price.
I have a few in the same suburb. I wouldn't worry about that.
I have a few in the same suburb. I wouldn't worry about that.
There isn’t anything wrong with buying a good area more then once, however I do offer some caution.
1) Is the CG from your previous investment going to be the sole reason you purchase there again. A good test of this is if as you are reading this you NOW just only think of all the positive attributes to also justify the investment.
2) Have you looked at the opportunity cost of investing in other suburbs with potentially higher returns?
3) Are you fully aware that past performance doesn’t always indicate future returns?
4) Are you comfortable with having 100% of your entire net worth invested in 1 suburb. Old toxic waste dumps have popped up, flight paths have changed, and any other number of unpredictable events.
I never say don’t keep buying into a good suburb, but know what you are getting yourself into with property because hopefully you’ll be keeping it for many years!
1) Is the CG from your previous investment going to be the sole reason you purchase there again. A good test of this is if as you are reading this you NOW just only think of all the positive attributes to also justify the investment.
2) Have you looked at the opportunity cost of investing in other suburbs with potentially higher returns?
3) Are you fully aware that past performance doesn’t always indicate future returns?
4) Are you comfortable with having 100% of your entire net worth invested in 1 suburb. Old toxic waste dumps have popped up, flight paths have changed, and any other number of unpredictable events.
I never say don’t keep buying into a good suburb, but know what you are getting yourself into with property because hopefully you’ll be keeping it for many years!
There are advantages to buying in an area where you already own property. You know the value of your existing asset and are able to compare it with the prospective purchase. You also know the rental market and can more accurately assess the demand for the new property.
You are effectively leveraging off your existing knowledge of any area. You may think of diversifying for your next IP though and look at some different areas.
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Many thanks for the advice mate,
Yes you are right, it is always better to diversify the region of our IP because of many reasons that Kent explained here.
The reason is simply because there are many Uni students around my suburbs because it is near the public transportation to the nearest the only Uni in town.
Yes you are right, it is always better to diversify the region of our IP because of many reasons that Kent explained here.
The reason is simply because there are many Uni students around my suburbs because it is near the public transportation to the nearest the only Uni in town.
Heck, we don't just stick to the same suburb, we stick to the same street.
Ahh heck, only the same street
. We have 2 in the same apartment block.I see no problem in getting properties in the same suburb. If your on a good thing, why waste time trying to find other potential locations to invest.
We have 2 in the same building, close to 2 uni's, close to the CBD, and close to a hugh new construction site that should see the area benefit even more.
This sounds like a good spot to be buying into and with these amenities it would be hard to go too far wrong. I have bought several IP's in the same suburb due to proximity to uni, hospitals, public transport etc.
Regards Jason.
Ahh heck, only the same street
We have three in the same apartment block.
Couldn't resist when I saw the above!
Definitely a great decision, we're really happy with our purchases there.... and if any more come up in the same complex, we may well look seriously into buying those too.
On a side note
Is this also handy to sway body corp decisions through more voting power?
So if you want to doll the places up a little it is easier to get the body corp to do an external paint or awning replacement etc?
I have seen a fair few unit blocks that look very dated and always wondered if it was stingy owners not letting the body corp refresh the place. I would hate to be the owner of a unit where you just couldnt get anything done because of other owners.
It's great when you control the body corporate!We have three in the same apartment block.
Couldn't resist when I saw the above!
Definitely a great decision, we're really happy with our purchases there.... and if any more come up in the same complex, we may well look seriously into buying those too.
No problems buying in the same area, suburb or street, that's how it was always done before this new fangled internet craze came along. Depends on the specifics of the deal.
Land tax is an incentive to diversify across states in Australia, perhaps you are trying to time the market by buying in areas that have underperformed, could be two reasons to diversify holdings to different states.
Reminds me of the quip from one of the reno kings when his financial advisor suggested his portfolio was overweight in property.Its good to see so many people buying in the same street but I have always been taught to never put too many eggs in one basket
Just overweight he responded? I want to be obese in property!
We are the owners of a ground floor apartment in a dated block in melb. When we bought it we looked two doors down and saw a refurbed one with comparable apartments selling for $100K more than ours. Excellent, except for the fact we have spent the last 3 body corporate meetings trying to convince the other owners to upgrade just the facade. Finally agreed to get a quote to render oct last year. Only have to wait to october this year for a response. We are expecting a big fat NO!!
That would be nice,when I say to many eggs in one basket,I mean if a flood ,fire or earthquake happens in that suburb as lots have found out recently.
There are some good bargains in my own suburb but I have two already here and I wouldn't buy another one here,even though my gut feeling tells me its OK.
Yes that kind of situation also makes me wonder what are they doing with the sinking money gathered from the strata ?
There's some really great advice on here re buying in the same area.
We have 4 properties, 2 in the same Melb suburb, 2 in the same Vic regional town. There is another property coming up for auction next door to one of our regionals and I've decided not to buy as I don't want too much exposure in the one smallish town at this stage. However, I don't have the same problem in the metro area.
I find we can get a discount from agents when getting multiple properties managed.
I find we can get a discount from agents when getting multiple properties managed.
