Hi all,
We are looking for some help and guidance for the next step towards our IP purchase.
My wife and I expect to have around 90k for deposit and aquisition costs, but we are unsure
whether to look for a single IP at around $400K, or to look around for 2 IP's at around a
total purchase price of $400k.We dont have any specific criteria for where the IP(s) should be, or the type of IP. However, we would
like to aim for areas that offer low vacancy rate and yields of at least 6%.Does anyone have any suggestions on what we should start looking for ?
Should we aim for 1 or 2 IP's given our budget and other constraints ?
Many thanks
Neil
swings and roundabout Neil, but really what ever is going to give you the best return is what you want, which means you need to find stock to buy and find out all outgoings and incoming.
I can't speak for everywhere but where i am two properties at 200k each means two lots of body corp fees where as a house can be purchased for 400k. Whats the outgoings going to be on either scenario? this is the stuff you have to find out for your self and make the decisions based on all the facts.
I personally have no problem with going for two cheaper properties if the out goings were acceptable and the area was going to show good growth, but that is probably easier said than done.
diggerdigzit wrote:swings and roundabout Neil, but really what ever is going to give you the best return is what you want, which means you need to find stock to buy and find out all outgoings and incoming.I can't speak for everywhere but where i am two properties at 200k each means two lots of body corp fees where as a house can be purchased for 400k. Whats the outgoings going to be on either scenario? this is the stuff you have to find out for your self and make the decisions based on all the facts.
I personally have no problem with going for two cheaper properties if the out goings were acceptable and the area was going to show good growth, but that is probably easier said than done.
Thanks for that.
I guess more isn’t always better. Maybe I’m
thinking 2 might reduce the risk of purchasing
a lemon. But then again, I could end up with
2 lemons!Thanks
Neil
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