Where to buy 2nd Investment Property?

[AVS]

Thanks JDP.

I have started looking in to units near Brisbane and Gold Coast. Thinking of buying 2 units around 250k and spreading the risk. May be 1 in Brisbane and 1 in Gold Cost. Though, I am bit scared for getting in to units as it is easy to get oversupply of units in both Brisbane and GC. I remember ready about some rule of having minimum X% of land but cant find it. Can some one please guide me on this.

Also can some one please also help with some rule of thumbs I should consider while looking at units. Thanks.

 

[Encarta]

Thanks JDP.

I have started looking in to units near Brisbane and Gold Coast. Thinking of buying 2 units around 250k and spreading the risk. May be 1 in Brisbane and 1 in Gold Cost. Though, I am bit scared for getting in to units as it is easy to get oversupply of units in both Brisbane and GC..

Then why even bother risking it? Just buy a house w land

 

[jerrybee]

There is no hard and fast rule, the more the better, but it totally depends on location. In some locations you may see an inverse correlation if it's that highly sought after.

 

[Taku]

Yes we have 3 investment properties in Reedy Creek in the same street as my kids school....purchased 3/2/2, 18 months ago for $227,500, $235,000 and $260,000...All renting for around $380 week, and still have the same tenants...vacancy rate in Reedy Creek is 1% at the moment....Also have a PPOR in Mudgeeraba near Somerset School, the best school on GC....hope this helps.

Hi Jude,

There some neat rental yields you've got your self there.
Have you had a reval on any of those properties?
What's the CG potential look like so far?


Cheers,

Taku

 

[JDP1]

Thanks JDP.

I have started looking in to units near Brisbane and Gold Coast. Thinking of buying 2 units around 250k and spreading the risk. May be 1 in Brisbane and 1 in Gold Cost. Though, I am bit scared for getting in to units as it is easy to get oversupply of units in both Brisbane and GC. I remember ready about some rule of having minimum X% of land but cant find it. Can some one please guide me on this.

Also can some one please also help with some rule of thumbs I should consider while looking at units. Thanks.

CG will be dependant on the combo of location and land constrained by budget.
I don't really know your long term goals/strategy...so its hard to advise in detail.

You might be better off to keep it simpler and target 500k instead of 2 250k's.
With 500k you will get more land/better location and possibly better bang for your buck and will be simpler to manage as well (as compared to two of them). Your choice is also much more with 500k as compared to 250k's.

 

[AVS]

CG will be dependant on the combo of location and land constrained by budget.
I don't really know your long term goals/strategy...so its hard to advise in detail.

You might be better off to keep it simpler and target 500k instead of 2 250k's.
With 500k you will get more land/better location and possibly better bang for your buck and will be simpler to manage as well (as compared to two of them). Your choice is also much more with 500k as compared to 250k's.

I am trying to see what options I have for units if I go with that option. Can stretch my budget to potentially 300-350k per unit if required. The only reason considering 2 units is after ready few articles, it sounds like it will be quicker way to gain equity than investing it in one house. First I want to check what options I have available, then crunch the numbers and see what will work best.

My long term goal is buy and hold and potentially renovate\subdivide after few years. Hence have been focusing on CG but with near neutral CF. Now I am challenging myself on my strategy and trying to think if I should chase CF and build equity with reno although I dont have any experience in this field.

 

[Rixter]

I remember ready about some rule of having minimum X% of land but cant find it. Can some one please guide me on this.

Also can some one please also help with some rule of thumbs I should consider while looking at units. Thanks.

AVS, maybe you were referring to my CGA investment strategy where one of my selection criteria for Townhouses & Villas is 30% courtyard component in order to eliminate highrise apartments/flats?

Another of my Macro/Micro DD in relation to selection criteria.

I also strongly suggest giving the GC a wide berth due to over supply factor.

I hope this helps.

 

[monalisa]

AVS, If I were you I would stick to Brisbane.

Having seen the Sydney boom - all areas go up when boom happens.

 

[JDP1]

I am trying to see what options I have for units if I go with that option. Can stretch my budget to potentially 300-350k per unit if required. The only reason considering 2 units is after ready few articles, it sounds like it will be quicker way to gain equity than investing it in one house. First I want to check what options I have available, then crunch the numbers and see what will work best.

My long term goal is buy and hold and potentially renovate\subdivide after few years. Hence have been focusing on CG but with near neutral CF. Now I am challenging myself on my strategy and trying to think if I should chase CF and build equity with reno although I dont have any experience in this field.

I Would suggest you continue to think more about your strategy and goals. spending this kinda money on real estate requires a.clearly thought out strategy.
I would not rush into any purchases, they will never run out of real estate, and your finances seem fine to not worry about FOMO

 

[AVS]

AVS, maybe you were referring to my CGA investment strategy where one of my selection criteria for Townhouses & Villas is 30% courtyard component in order to eliminate highrise apartments/flats?

Another of my Macro/Micro DD in relation to selection criteria.

I also strongly suggest giving the GC a wide berth due to over supply factor.

I hope this helps.

Thanks Rixter. I remembered 30% but was not sure about any other details.
I have been very cautious about GC but looking into details of Reedy creek as suggested on this forum, it looks good with initial research. Low vacancy rate is attracting me. But I will take time to make any decision and will consider your advice. Thanks.

 

[Rixter]

Thanks Rixter. I remembered 30% but was not sure about any other details.
I have been very cautious about GC but looking into details of Reedy creek as suggested on this forum, it looks good with initial research. Low vacancy rate is attracting me. But I will take time to make any decision and will consider your advice. Thanks.

Remember the Property it self is merely a vehicle..

With the above in mind, where does purchasing this property fit into your portfolio's BIG picture for investing in the first instance?

What are you looking for the property to do for you?

And in what time frame?