What do people think about buying properties in one area vs buying properties across many areas / states?
It makes sense to become an expert in one area, and to concentrate your efforts.
It also makes sense to spread your risk across states: lower land tax, less likely you'll get hit by a state-specific issue, and the chance of catching those special booms. e.g. most of my IPs are in Qld, but my one IP in Perth which I bought with a view to diversification caught the back end of the Perth boom).
However, to diversify almost involves information overload. For example, within my criteria (Max $250k - $300k, 3+ bedroom houses on large blocks with future development potential in the capital cities) I've found dozens of suburbs that might be suitable in Melbourne, Sydney, Brisbane and SE Qld. And I haven't done the research on Adelaide yet.
How do people approach this issue of concentration (as Michael Yardney advocates in his book) v diversification?
Alex
It makes sense to become an expert in one area, and to concentrate your efforts.
It also makes sense to spread your risk across states: lower land tax, less likely you'll get hit by a state-specific issue, and the chance of catching those special booms. e.g. most of my IPs are in Qld, but my one IP in Perth which I bought with a view to diversification caught the back end of the Perth boom).
However, to diversify almost involves information overload. For example, within my criteria (Max $250k - $300k, 3+ bedroom houses on large blocks with future development potential in the capital cities) I've found dozens of suburbs that might be suitable in Melbourne, Sydney, Brisbane and SE Qld. And I haven't done the research on Adelaide yet.
How do people approach this issue of concentration (as Michael Yardney advocates in his book) v diversification?
Alex