hey all!
O.K. I know this subject would have surely definetely been posted in the past or maybe even now(but if it is, dammed if I can find it!)
anyway, what I want to know is, is it unwise to buy too many IPs in the one place? within the next 4 weeks we will have purchased our 2nd IP in the one country town.after this -what next?? Im worried that if we have all our IPs in the one town and the place is doomed, so are we, or on the otherhand, we have purchased properties that meet 11-sec. so do we continue? just want to know how many investors out there “spread out” thier IPs
anyone?If I was buying in country towns I would spread my risk. I would look for another town or something in the surburbs. Investing is also about managing risk. How confident are you about the town? By asking this question, it appears you have some doubts.
rusty,
I personally would buy 10 IP’s in one place if I thought it was the “right” place for me. It depends on where it is. I am happy to look all over Australia for properties- and don’t limit that search. But searching is one thing, and purchasing is another. Your question has so many complexities really. Whrever you buy, you’d probably be looking for things like value and sustainability. If you’ve found the IP town/region/city of your dreams, then why not?
My purchases are quite random really- if I find something I like, and I can afford it, I buy.
Use whatever criteria you usually use… like $$$ numbers, or population fundamentals, or post 1985/1987 properties (depreciation) or whatever is important to you. And then buy whatever fits- in whatever place
kay henry
Even if you are in the perfect town with the perfect information and the best due diligence I still think that risk minimisation tells you to buy in different places. I jsut finished settling 2 properties in a place that is super positive, has 20,000 inhabitants and booming work prospects, but will move on and look for the next best town/city. Wrong? Who is game to tell? No one has the cristal ball and so you balance the risk.
It is the same when buy in a big city. You don’t go and buy 20 properties in the same suburb.
There are many circumstances that can change beyond what anyone can envisage.
The worst suburb can get better, the best suburb stagnate, the ideal town can lose it’s source of work, railway shut down, bigger town nearby draw away all the younger ones. Housing commision may sell all the houses and clean up the place.It pays to be on the ball all the time and to have your finger in different pies. “Multiple streems of income”
May God prosper you always.[biggrin]
MarcMarc, thanks for contribtuion I have been wondering about this for some time.
Now can you be generous enough to provide location. (joking)Hi Rusty,
It depends on which theory you subscribe to.
A) Put all you eggs in one basket and watch it like crazy. Ie know the area, research it well, choose carefully and work the area hard.
Spread you eggs around many baskets.Me I am a type B investor and am spreading my risks around the place.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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