How close to buy IP near home?

[Greg B]

Warning newbie

Hi All

First IP buyer here. I'm looking at buying my first IP at around 400K with a medium to long term view.
I have often heard that it is a bad idea to buy an IP too close to your home(eggs in one basket). Obviously the area where I live I know best and as I'm a bit of a do it your selfer no being too far away would be good.
So how close is too close or is this not considered much of an issue?

I live in Marino SA and are looking south from Seacliff to Moana.

Thanks in advance

 

[TMNT]

The best place to buy an ip is next door!!!!!!!

That way you have double block of land!

 

[D.T.]

I wouldn't use closeness or distance to / from home as a parameter at all. If you find a deal that fits your criteria as part of your overall strategy then go for it, regardless of whether its near to / far from you.

 

[Singo]

We have bought all our properties within 10km. (Four suburbs next to each other) This is useful if renovation is part of the strategy. And focusing on a few suburbs makes it easier to decide quickly and jumb on to good deals before out of area investors do their DD.

Living in an area does not make you an area expert. You have to do your leg work to understand your target areas even if it is your suburb.

 

[mini2]

The best place to buy an ip is next door!!!!!!!

That way you have double block of land!

+1

Plus I'll manage to get rid of those tenants next door and I can get rid of all those trees as well!

 

[Greg B]

Thanks for the feedback

 

[Jamie M]

Hi Greg

Generally speaking, I agree with DT above in terms of not restricting yourself to local properties. With the use of technology these days, you can carry out some comprehensive due diligence from your PC.

It can also depend on your strategy. If you're looking to renovate extensively, etc then it can be useful purchasing IPs closer to home as you're able to have more active involvement.

Cheers

Jamie

 

[Corey Batt]

Buy where the numbers stack up, this may be next door, or the other side of the country.

A good acid test if you are looking nearby (to suit your comfort factor) is to compare with something on the 'other side of town'. Look how the numbers stack up and ask whether the investment still stands as your preference.

 

[baby blue eyes]

Don't be turned off by your local market. I get sick of the Lomas view and the way she pounds people who buy local. Buy where you are comfortable, buy where the numbers are right. As you develop as an investor you will know what you want and how to pick markets. Keep away from spruinkers and read read read.

Good luck

 

[R377]

Greg,

Most of the interstate markets have picked up. Adelaide is always behind so now is a great time to buy.

You cannot go wrong buying from O 'sullivan beach through to Moana. Can even buy closer inland, hackham and christie downs - yields are good and always had good long term growth. The Expressway and train upgrades will help even more...

I would avoid seaford rise and meadows