This thread has been very enjoyable. I think you are baiting people with your comments but do agree there are some strong headwinds. A good investor makes money in up and down markets. I am in the US now and the market is on fire due to low supply. This has been good for me flipping homes. I don’t think it can continue so if it turns I am ready to build on my rental portfolio and buy upside houses subject to the existing mortgage. So basically up or down it doesn’t matter, just keep your eye on the market and adjust the strategy accordingly.

Love this post, thanks for sharing.

Just to extend on your option B, once you up the house and rent it out you should have created some equity. You could then refinance out that equity to buy another similar house to do up and keep repeating. This is the benefit of buying cheap houses with cash and creating value. Get with a wholesaler in that area who could probably show you great offmarket cash deals that you wouldn’t see on the MLS.

Hey Steven, I have properties in Geelong and Melton but bought them a few years ago and am out of touch with the market. I like you strategy, it is really common in the States, they call it BRRRR. This stands for Buy, Renovate, Rent, Refinance, Repeat.

I think the biggest technology disruption right now is remote working with Zoom etc. This is going to change the commercial property space significantly and to a lesser extent the residential maker as people don’t need to live where they work. Obviously online shopping is already impacting the retail sector. I also think block chain will disrupt title companies.

Personally I think you should look all over Australia for the best market. I grew up in the Eastern Suburbs of Sydney and always rented where I lived and bought in the best markets. I have 6 single family houses in 3 different states in Australia (all in different local council areas). I recently wrote an article for hipages about buying and managing properties out of state. You can check it out here if you are interested https://hipages.com.au/article/buying_managing_properties_out_of_state

This is a positive effect of Corona. I own 3 rentals around Brisbane and am interested to hear what is happening the market. I live in New Orleans, Louisiana whoever and miss all these meetups. At least this one I can attend.

Where is your property located Dean?

I own 6 properties in Australia. They weren’t hard to find, once I researched and identified the area I used Realestate.com and a local property manager to check out the properties for me. That being said the returns aren’t great in Australia so it is hard to find great investments. I know live and invest in the USA as the cost of living is lower and the returns from property are higher. I focus on the New Orleans market, not that this is the best market, its just where I choose to live and have the easiest time finding deals. I now go direct to the sellers and buy off market houses from distressed home owners. This is where you can get good deals but you need to invest in marketing to find these deals.

If you are buying this house to live in then I think only you can answer the question. It is obviously a personal choice of where you want to live and not an investment decision.

Sydney is super expensive to buy in but the rent relative to the price is low (yield). Another option is to rent where you want to live and buy an investment property. This will open up your options to other areas and other states. You will be able to make a rational investment decision, whereas a personal resedence is an emotional one.