A strategy that I'm thinking of implementing is to become a specialist at investing in 2 suburbs. The 2 suburbs are 7 km from Perth's CBD. I already have some experience in these two suburbs having grown up around there and I just recently bought my first ip there.
Just off the top of my head
Some Pros and Cons
Pro's
1. I would become knowledgable through experience of what the good areas of the suburbs are and the not so good areas.
2. I would know where all the units and villas are located and what amenities are nearby. If for instance I put an offer in on a property in a unit complex but it falls through, if another property comes up some stage later I have information at hand in regards to the building, strata, finances, the history, sales figures etc.
3. I would become experienced at placing a value on a property and will know/realise when I see a real bargain. I would also have at my disposal up to date sales figures that I can refer to.
4. It would be easier to keep track of old listings (in that im only concentrating on 2 suburbs) How long the property has been on the market, how much they were asking etc how much other similar properties were asking, how long it took for them to be sold etc. I would begin to notice when a property is priced right, it usually just flies out the door and that is what im starting to learn.
5. Build relationships/networking with local real estate agents. This can help in many ways, one example being... a ra will have my number and ring me before the property officially comes onto the market. They know i am a serious buyer.
6. Both suburbs have a strong history of good capital growth being only 7km from the Perth CBD and are desirable areas to live in.
7. If I wanted to I could employ just the one local PM to manage all of my properties therefore I would get a discount.
8. Less stress, comfort level will be good, better SANF.
Cons
1. Limits the amount of offers I can make because there is less choice of properties to look at. I may have to wait a bit longer between purchases to find something for a good price. I might have to buy at asking price/valuation price.
2. All of my eggs will be in the one basket. However to offset this I may employ a buyers agent to buy a property for me in another state as a way of spreading my risk and timing the cycle.
I cant think of anymore cons right now.
Can anyone think of some pros and cons?
Anyone else here invest in just 2 or 3 suburbs.?How is it going for you? I think this could be a very real option for me and hey there is not right or wrong strategy. Its all about finding a strategy that works best for you. The more and more I think about it. The more it makes sense to me!! I think this topic will bring about an interesting discussion. I look forward to it! I am very open to hearing all sides and other people strategies. The more the better.
Can anyone direct me to any threads that would be of interest to me?
Thanks
Just off the top of my head
Some Pros and Cons
Pro's
1. I would become knowledgable through experience of what the good areas of the suburbs are and the not so good areas.
2. I would know where all the units and villas are located and what amenities are nearby. If for instance I put an offer in on a property in a unit complex but it falls through, if another property comes up some stage later I have information at hand in regards to the building, strata, finances, the history, sales figures etc.
3. I would become experienced at placing a value on a property and will know/realise when I see a real bargain. I would also have at my disposal up to date sales figures that I can refer to.
4. It would be easier to keep track of old listings (in that im only concentrating on 2 suburbs) How long the property has been on the market, how much they were asking etc how much other similar properties were asking, how long it took for them to be sold etc. I would begin to notice when a property is priced right, it usually just flies out the door and that is what im starting to learn.
5. Build relationships/networking with local real estate agents. This can help in many ways, one example being... a ra will have my number and ring me before the property officially comes onto the market. They know i am a serious buyer.
6. Both suburbs have a strong history of good capital growth being only 7km from the Perth CBD and are desirable areas to live in.
7. If I wanted to I could employ just the one local PM to manage all of my properties therefore I would get a discount.
8. Less stress, comfort level will be good, better SANF.
Cons
1. Limits the amount of offers I can make because there is less choice of properties to look at. I may have to wait a bit longer between purchases to find something for a good price. I might have to buy at asking price/valuation price.
2. All of my eggs will be in the one basket. However to offset this I may employ a buyers agent to buy a property for me in another state as a way of spreading my risk and timing the cycle.
I cant think of anymore cons right now.
Can anyone think of some pros and cons?
Anyone else here invest in just 2 or 3 suburbs.?How is it going for you? I think this could be a very real option for me and hey there is not right or wrong strategy. Its all about finding a strategy that works best for you. The more and more I think about it. The more it makes sense to me!! I think this topic will bring about an interesting discussion. I look forward to it! I am very open to hearing all sides and other people strategies. The more the better.
Can anyone direct me to any threads that would be of interest to me?
Thanks