136k in equity - should I use it for 1 or 2 new properties?

Hi all,

Looking for some thoughts on the below please. As per title - I have 136k in equity. Looking to make a 4th and 5th investment property purchase - the 4th as soon as possible, the other before end of the year.

Would you use the 136k of existing equity to fund one more expensive property (e.g. 525k mortgage on a 500k property where the equity I have funds the 20% deposit of 100k plus the purchase costs of about 25k for stamp duty/legal, etc?)

... or.... should I go for 2x400k properties with 425k mortgages each (i.e. use half of the equity to fund the 10% deposit of 40k plus approx 25k stamp/legal fees on each of the two new properties).

What would you do in my situation? I appreciate that there are more ins and outs - but just looking for some quick fire answers to help me get outside my own head and have some external ideas.

Thank you.

 

Strategy: Consider multiple cheaper Properties Strategy: Consider multiple cheaper Properties

 

From what I have seen (Melb/Bris), under about 450-500k and you often have to go so far out of the areas in demand that growth ends up being lower. I think 500k is the sweet spot right now.

I am sure there are exceptions where you could do find some, but I don't know where they are. If you know where you can get properties for 400k that will have the same growth potential, I'd love to hear about it.

 

Have you checked with a broker to see how many more properties you can service?