IP with $1.2m budget

Discussion in 'Investment Strategy' started by jms980, 3rd Feb, 2021.

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  1. jms980

    jms980 New Member

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    Hi,

    I don't have any new investment property yet and now looking to purchase my first investment property. I have a budget of about $1.2m.

    I have few questions at this stage and would appreciate your feedback to a beginner property investor.

    1. Is it better to purchase a house around $1.2m in Western Sydney? or Unit in inner Sydney like Lower Northshore / Neutral Bay / Mosman?

    It seems that buying a house would give you an overall better capital growth but is it easy to rent out a house? Somewhere in the inner city would be easier to rent out? I appreciate there are people going outer Sydney looking for space but i assume the demand for inner-Sydney will always be there and easier to rent out compared to a suburban house in Western Sydney?

    2. To diversify the risk, is it better to buy 2 properties opposed to 1? i.e. 1 bedder in inner Sydney for $600k and house in Western Sydney for $600k vs $1.2m house in Western Sydney

    3. Do you go interest only on your IP until you have fully paid your PPOR or do you start P&I for IP from beginning as well despite less tax benefit?

    Many thanks
     
  2. Trainee

    Trainee Well-Known Member

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    Can you give an example of what you would buy in western sydney for 1.2?
     
  3. jms980

    jms980 New Member

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    Winston Hill? Rouse Hill?
     
  4. Trainee

    Trainee Well-Known Member

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    ok your definition of western sydney is different then.

    think of western sydney as along the western trainline towards penrith.

    north west as along the metro towards tallawong.
     
  5. jms980

    jms980 New Member

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    I see. Thanks for clarifying the definitions.

    So my question 1 would be $1.2m house in North West vs Units in Inner Sydney.