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

I am invested in 5 regions, not counting shares. I have concentrated on 2. but I don't like having more than $1m in one region, so I have sold 2 in one region in the last 3 years and maintained the value of security there @ $1.2m and a loan of 900k, being crossed wasn't a problem in this instance. But I think the best investments can be local, and for me, have proven so, despite what spruickers like Micheal Yardney , Chris Grey and another spruicker who introduced himself here a while ago. have said there are drivers of some parts of many towns that are universal, if you are local you can understand the nuances , it is easier to build networks and to find properties before they hit the market. I have people working in the same field renting my unit in Brighton, as I do in Mildura.

 

I think every time you buy part of DD is watching and analysing a suburb so much you become an expert in the suburb, meaning you can instantly look at a house and know within 5% what it should sell for. All the burbs I have houses in a keep watching which, as others have mentioned, hurts when a really good deal comes up. Makes you want to buy.

 

Looks like you are nicely diversified

 

I'm super across the couple of suburbs I've bought in
And have good general idea re other metropolitan areas in Sydney based on all the domaining I do whenever I have downtime

Starting to become more familiar with Melb suburbs since I started looking there late last year

 

How about buying different types of property in the one area? Terrace House, Town House, Apartment/Flat?

Read that in a book once (Wakelins perhaps) and tried it myself. Seems to be working ok...

 

I just dont like Strata Fees with this idea.
Some of the Sydney City Units with $1400 strata fees plus Council and Water rates leave little rental income after all that.

 

Really just concentrate on newcastle to research because my dads a builder and with one phone call he can be there looking at something and all my mates are tradies so they can be there quickly.

I know this isnt right about investing but just for piece of mind knowing I can do a drive by at any moment is a good feeling.

 

Thats a slightly different situation again IMO and I would use your natural advantages also if I was luckly enough to be in that position.
You probably have the ability to renovate properties quickly, cheaply and to a good standard without a lot of oversight. The downside might be if the market turns for the worse you might not have anything growing but maybe you could still manufacture equity.

 

Yes.
Did an extensive amount of research on two towns within an hours drive from our home. Found both to tick all the necessary boxes for our strategy. There have been modest CG's but the cashflow has been terrific in regard to initial outlay. Overall a very positive outcome.

 

Hi Darlinghurst,

Great question, I only focus on one "area" at a time and the reason for this is because I want to do as much due diligence as possible. I have been focusing on the West of Melbourne for quiet some time. Sure I might of missed some other opportunities but I have done quiet well from my investments.

Becoming an expert does certainly help!!

 

We stick to areas close to where we live. This is primarily a practical thing for us - as ours are all self contained, it would be impractical to buy too far away, unless we used a different approach.

 

One negative is it is all in one state so I have to pay a little bit of land tax

 

We are in the same situation in Qld so we diversified into NSW and recently SA.

 

For now I am focusing on my local area over four postcodes... Predominately focusing on three suburbs including the one my IP is in. Once landtax becomes an issue (currently only 1 IP) I will obviously start looking elsewhere.

 

I focus on one area at a time. Once the numbers don't work in that area, it's time to move on.

In that area, I would say don't limit yourself to a few suburbs. It's like saying I will only invest in Tregear or Wilmont and not the rest of 2770 - doesn't really make sense.

Focus on the suburbs where the numbers make sense.

Recently been following 10 suburbs in the Logan area where you could get 7% yields.

Cheers,
Michael

 

Which suburbs?

I'm guessing Kingston and Slacks Creek is in that list of 10?

 

I have 6 in one council including 3 in one street. Still keep an eye out for bargains but unsure if I'd get any more there.

 

Like @Michael_X, I focus tight on an area and move on when it makes sense to.

Specialising enabled me to become intimately familiar with prices, build great relationships with area-agents, monitor the market, buy under value every time and achieve well-above average rental returns.

Admittedly, a lot of that came from my financial situation. Didn't have a huge income or mountains of equity so had to make sure every purchase was a ripper.

If I had unlimited serviceability and 7-figures of equity I'd probably have been happier to spread it around a bit more.

 

I've found decent yielding for the stretch of suburbs from Slacks Creek/Woodridge all the way down to Beenleigh/Eagleby.

Cheers,
Michael