Has anyone observed this?

Discussion in 'Investor Psychology & Mindset' started by Property101, 27th Mar, 2017.

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  1. Property101

    Property101 Well-Known Member

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    Lets say you purchase a 650K Duplex or 2....$1,300,000.00 Rent received would be $1,000 per week.

    Or purchase one home $1,000,000.00....rent $650 or $700 per week.

    so

    It would appear that the later doesn't generate as much income as the two properties...also it could be harder to sell long term.

    Also for long term investing you could benefit by gaining twice the growth...rather than just once for the more expensive property.

    Basically the cheaper properties could perform better than the one expensive property?
     
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  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I would agree generally.

    There's a similar principle in share trading - much easier for a $3 share to double than a $10 one. Also in property the liquidity is much lower for high end, assuming that the median price is not $1,000,000. (Assuming Perth rather than Sydney).
     
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  3. datto

    datto Well-Known Member

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    Another reason to buy up in the Druitt. Better yields plus capital gains eventually
     
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  4. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Vacancy for a pair of duplexes can be lower ie you can have 1 vacant or both vs house is 100% leased or 100% empty.
     
  6. BillV

    BillV Well-Known Member

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    There are no guarantees of that because the more expensive property could be in a very popular area. However, the holding costs of the 2 cheaper properties will be much lower and this is an important consideration.
     
  7. Depreciator

    Depreciator Well-Known Member

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    The duplex strategy is pretty common - we do Dep Schedules on lots of them. Good depreciation in them because there are two ovens, cooktops, hot water etc etc.
    Scott
     
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  8. neK

    neK Well-Known Member

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    Location plays a key part.
     
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