VIC Diversifying my property investments from Melbournes west

Hi all,

Long time lurker first time poster. I am mid 20's with 3 investment properties in Melbourne's west as well as my partner's 3 bedroom PPOR in Werribee. I am looking at purchasing another investment in the 300-550k range. I was initially looking at Geelong (possibly because it was comforting having something within driving distance) but now think I should be looking interstate possibly Brisbane? So my question is how important is diversifying across different states and what cities are your picks for future medium term CG growth?

Property 1 - Truganina -Off the plan 4 bedroom house -Purchased SEP 2015

Property 2 - Laverton- Old nice 3 bdrm weather board on 680 sqm - Purchased MARCH 2016

Property 3 - Deer Park- Old average 3 bdrm weather board on 580 sqm. - Purchased APRIL 2017

Thanks

 

long term CG growth**

 

I'm in the exact same boat.

Looking at Brisbane to avoid higherland taxes as well.

Need a trustworthy buyers agent. Anyone keen to recommend?

 

Wow good going that you were to buy in all those areas and still have borrowing capacity left. Are you able to share more details behind those properties if you're comfortable, i.e. purchase price, rent, yield and land size and whether they have development potential?

Diversification is definitely important especially to an economist like me but timing is also important because there's no point diversifying into say Sydney when it's at it's peak. There are pockets around Melbourne and Brisbane still running red hot. If you look at Thomson, Whittington, Hamlyn Heights, Norlane and Corio you can still get good deals. Potentially too late for Newcomb. Same around Brisbane with area a bit further out from the CBD as the inner city is hot. Logan is running hot too with fhb to compete with, we bought just before the rush. Watch out for the flood zones too! Hope that helps!

 

All of these locations are in roughly the same geographic area, around the same general price point. The demographics of the populations in these areas is roughly the same as well. Fair to say that if one suburb goes backward or sideways for an extended period, the others will probably do something similar.

Diversifying to somewhere significantly different is probably a good decision. These properties will have done well recently and might have a few good years ahead of them, but eventually they'll be in a market cycle that doesn't do much. At that point it will be good to have something elsewhere that is potentially in a different market cycle.

I'm not suggesting that these are bad properties by any stretch. Just that different locations across the country have different cycles. Averaging your portfolio across multiple cycles will give you access to more opportunities over time.

 

Thanks appreiciate the replies I assume majority of investors buying interstate use a buying agent? Ill look into those suburbs just trying to read as much as i can knowing very little about the Brisbane market. I dont wanna **** people off asking too many obvious questions as im sure a lot of answers can be found in the threads on here. Im new to property investing my first 2 properties were emotional buys (wanting to buy close to my parents/friends, first home buyer grant ect) but they have done okay with the recent boom in the area. I bought Deer Park due to all the hype around St Albans and think I got a good deal on that property.

Property 1 - Truganina -Off the plan 4 bedroom house -Purchased SEP 2015
Purchase price 430k, Rent= $410/week, 400 sqm block.

Property 2 - Laverton- Old nice 3 bdrm weather board on 680 sqm - Purchased MARCH 2016
Purchase price 465k, Rent= $330/week. 680sqm rectangle block development potenital there is plenty of developements in the area or houses selling with plans.

Property 3 - Deer Park- Old average 3 bdrm weather board on 580 sqm. - Purchased APRIL 2017
Purchase price 445k, Rent= $300/week. 580 sqm with developement potential ( not sure what i could fit on it. Being close to St.Albans and all the planned infastructure hopefully the zoning and building restricitons will be more favourable)

Thanks again!

 

lots going on in Laverton that looks to be a real hotspot and should benefit in the coming years from ripple effect and regeneration.

I am buying a 4 BED townhouse in Brisbane's north about 10kms from CBD for under $600k. The demographics are great, supply limited to a smaller re-zoning of the larger area, and the projected yield is above 5%. Historic long term CG is 6.73%. Stamp around 3% only for investors which is much easier to come up with on completion to what Melbourne is now. Happy to talk you through my reasoning if you want to get in touch.

 

Yes Laverton is looking good I think there is a chance they will sell off the raaf base and Laverton could join up to the Williams landing making laverton a lot less isolated.

Yeah sounds interesting send me through a pm I would like to know your reasoning for an off the plan townhouse vs something established?

 

Sure, help me out Aussie1 by letting me know how I can PM you, I am a Noob to the site, thanks