HOW much to invest? Maximum??

Hi team,
Looking to invest in our second investment property, and wondering if there is any theory as to how much you should invest in any one property? Broker says we're able to borrow over $1M, but this makes me nervous ... I'm currently looking at middle ring suburbs in Melbourne around $800k, but should we spend the full amount instead? Is it better to have fewer properties worth more, or more properties overall? Would be interested to hear all theories!

B/G: Goal is long term capital gains, and cashflow is not a problem due to dual high income.
PPOR in Canberra, + another house lived in by family member there, + IP -duplex in Brisbane.

 

It's not how much you should invest in one property. It's how hard your invested dollars bringing you a return, through CG and CF+, hopefully doing well in both camps. That's my 2 cents worth.

 

How much to spend is really hard to ascertain, especially if youre looking for good growth areas which generally doesn't really provide the yields, however since you have good positive cashflow on other properties then it's most likely you might have a balanced portfolio.

There's no rule in how much to spend, it depends in the area you want to buy.

 

How much debt you take on depends on your 1. risk tolerance, 2. goals and 3. financial situation.

Generally speaking for CG I like to look to ripple areas near areas already having high growth. Something you can possibly add value to. Not too CF draining unless its really an add value and sell deal.

The combinations of what you can do is endless. Just depends on those 3 factors I mentioned above.