Will you buy an IP based on land size or location?

[yadeh]

Dear all

I posted this before but did not get any response. May be my post was very specific. So, i am trying it again:
I have a budget of aroud $330k to spend on another IP. With this, I can buy a 3 bedroom house in hoppers crossing with a land size of 600sq or a 3 bedroom house in Altona meadows with the land size of 300 5q. Considering that Altona meadows is both closer to the beach and the city than Hoppers Crossing.

My question is this: if two proprties have almost thesame price, would you prefer the o e with bigger land size or the one closer to CBD. Looking forward to get more response this time!
Yadeh

 

[Ace in the Hole]

Probably don't qualify to respond as I dont know those suburbs, but would pick location over land size every time.
This is based on reasonably similar dwellings and no disadvantage with any development/redevelopment potential.

 

[albanga]

There are far too many variables to make an accurate call on this BUT Me personally I would take land size so I could subdivide it but land in whoop whoop with endless other stock is almost useless.
If however you gave me the option for a big block in a decent suburb but with an awful run down home OR a small block with a new modern unit/townhouse at the same price then I would take the big block everytime because it has so much more possibilities.

 

[moonflower72]

I'd buy in the right suburb.
Do your research on the 2 suburbs, look at city plans for the areas etc and then make your decision based on which suburb is likely to have more growth and has more amenities that make it an area desirable to renters.
Good luck

 

[BayView]

Landsize is probably only important if there is the plan (and the zoning) to subdivide later.

Plenty of IP's that are apartments (almost no land component) can be good investments for CG over time.

Most folks looking to rent want good location in their list of must haves, usually.

 

[yadeh]

Hi Guys

Thank you all for the comments. My understanding now is that I should go for a better location than the land size in relation to this option. I understand that these suburbs do not have that much growth history but with a budget lower than 300 k, they are the affordable ones for an IP.
My strategy is a passive one: I buy with a 20 percent deposit and renovate and rent it out and wait for CG. The cash flow is usually neutral.