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Do any of you concentrate on only 1 or 2 Suburbs?

Discussion in 'Where to Buy' started by Darlinghurst Boy, 29th Jul, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    i would be interested to know how many if you only concentrate on only one or 2 suburbs?
    Yesterday i was up on the Central Coast looking at the infamous Gorokan Drive a suburb in Lake Haven Central Coast NSW.

    I met a guy who Was a property investor and I asked him about The street named d Gorokan Drive and he commented that street was his "cut off" point and only invests in Gorokan South and towards Kanwal, never ever in other suburbs.

    "How do you expect to become a expert if your all over the place " he says.
    "Plus I live here in Kanwal so I know the bad parts and good parts" he said.

    Then it got me thinking , how many property investors are the same?
    The benefits are you become an exoert on the area, the streets , the future etc.
     
    Last edited: 29th Jul, 2015
  2. jaybean

    jaybean Well-Known Member

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    I'm an expert in about 10 suburbs. As in, I know them back to front and have spent hours driving around and / or trawling Google Maps. Generally I focus my complete attention on about half of those, but I am always keeping an eye on about 10.
     
  3. wylie

    wylie Moderator Staff Member

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    I also stick close to home, even had 3 IPs in one street and then bought the one behind one of those :).

    I have been looking for a few friends so had searches on five suburbs I know well enough plus ticked "surrounding suburbs" to catch others close by. Youngest son has just bought as a result of my searches, so will probably remove searches. I hate seeing something good and thinking "is that better than the one he bought?"
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    Have limited ourselves to the eastern half of Melb (except for the odd few that cross over to the west by a few km :D )

    We will at some stage though begin our conquest of Bris Vegas.....

    The Y-man
     
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  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    If you would have bought just a couple more on that street you would have the option of partying loud past midnight without issues :D
     
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  6. HUGH72

    HUGH72 Well-Known Member

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    There are great benefits as you have stated. What if you don't want to invest where you live? Maybe its too volatile or other areas have better prospects.
    The advantage of buying locally is you may know the market extremely well but the downside is exposure to only one market.
    If your chosen market is going nowhere for a number of years your missing out on growth elsewhere as different cities have different cycles as we know.
    At one point nearly a third or fourth of all resales in Qld of properties purchased in the last 5 years were for prices below their original asking price while Sydney has boomed.
     
  7. wylie

    wylie Moderator Staff Member

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    Funny you say that. We did try to buy another in the street, had a verbal agreement from the elderly owner until a relative stepped in and wanted to market it differently. We had not offered a low price, but a fair price. I believe she may have sold for a little more, but once agent fees came out, she would have been better to ignore her family's advice.
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    I assume you mean "going nowhere for the next century or so" - for in your example above, if Qld is going to recover (ok, so a BIG if..... only kidding people!!) then my argument is better buying there below original asking prices than buying into a booming market which may top out and stagnate at any time?

    The Y-man
     
  9. HUGH72

    HUGH72 Well-Known Member

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    There are other risks associated with concentration of assets for example:
    Rezoning of adjacent land which allows unfavorable development which devalues your properties, upgrading of roads or rail lines etc The possible risks are endless but unlikely, what about people who may have owned several properties in their once blue chip streets in Chelmer prior to 2011?
    Having large sums of money tied up in one asset is enough concentration risk for me without trying to buy up the entire street although I do acknowledge the benefits.
     
  10. HUGH72

    HUGH72 Well-Known Member

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    The eastern half of Melbourne is a big area so not too concentrated IMO unless your talking about only 1 or 2 suburbs or worse streets?
     
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  11. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Must have been a little frustrating @wylie. Knowing that she's probably going to be better off ignoring them and going with you but at the same time nothing you can do bout it, and you lost a deal too. Well there's always another one round the corner, literally for you, in this case :p
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    Nah - as you have pointed out, some subs too hot, some stone cold - and changes quite frequently too.

    FYI for the noobies who might be reading - I add properties I might be interested in on my re.com saved list, and see how quickly the some under offer. If they don't move then.... :)

    The Y-man
     
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  13. Samten

    Samten Well-Known Member

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    [ Youngest son has just bought as a result of my searches, so will probably remove searches. I hate seeing something good and thinking "is that better than the one he bought?"[/QUOTE]

    Yes good idea to remove. I hate when you spend ages on researching something you want to buy like aTV or some such thing around the house, then finally commit and go and buy it only to find it cheaper in the next store/catalogue the week after!:rolleyes: Make a point of not looking at anything now after I have bought!
     
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  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi Samten,

    I think a small element of buyers remorse may also creep in there.
     
  15. 2FAST4U

    2FAST4U Well-Known Member

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    I don’t limit myself to a particular suburbs but there are definitely a handful of suburbs that I’ll check on every week and the suburbs I want to invest in I’ll have a look on real esate.com and Domain each day to see if they have any new listings etc. Currently I’m looking to purchase in one particular suburb but if I see a good deal come up in a nearby suburb I’ll be happy to go ahead with it. I guess I do limit myself to regions though since currently I’m not looking to purchase anything interstate.
     
  16. MRO

    MRO Well-Known Member

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    I buy in the same general area. I know this is a somewhat flawed strategy as you increase your risk and limit your opportunities but I am able to buy with confidence in this area and hope my knowledge allows me to make money on the buy that i may miss out on in more diverse areas where i know less about.

    I also do a lot of reno work, maintenance and property management myself so buying close to where i live does have some additional value.
     
  17. Fargo

    Fargo Well-Known Member

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    Not necessarily there can be very different markets with in the same suburb, there can be similar markets in different suburbs
     
  18. HUGH72

    HUGH72 Well-Known Member

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    Possibly, but it doesn't alter the geographic risk associated with concentration of assests to unforeseen events.
     
  19. M-THIS

    M-THIS Active Member

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    I'm the same as most in here and limited to one region or handful of suburbs...

    How does one look for investment opportunities in other capital cities??? I feel like i should be doing more (ie Brissy), but how to start?
     
  20. Depreciator

    Depreciator Moderator Staff Member

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    Laziness has made me stick to my suburb. Fortunately, it has proven to be a good place to buy. I previously bought in Tasmania and regional NSW, but sold them. I also feel I should look further afield again, but I struggle to muster the enthusiasm.
    Scott
     
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