Land and house package as IP

This ^^^. Look interstate if you must have more property, or else consider shares, ETFs, etc.

 

If you already own 2 IP's and looking at a third, you should really be looking at asset protection (i.e. buying through trusts etc..) this will also reduce your land tax. Speak to a good accountant.

 

I agree 100%, a double block or a large sub dividable block in a premium suburb would be much more likely to have better cap growth in the long term.

 

Hi, kudos to you for thinking how to get ahead. The property market in Australia is quite mature at the moment. It's hard to make a lot of gains without a value-adding component.

You're right about the hassles of sub-dividing. That's why paying a buyer's agent may save you money in the long run. There are a couple of good agents on this forum.

What I did was to pay a surveyor to do a topographical survey. At that time, business was so slow that he undertook to talk to the council on my behalf. I was in Singapore, buried up to my eyebrows with my business there. He emailed a report to me.

I'd be forever grateful to my conveyancer for recommending that step. I probably wouldn't have bought that property to sub-divide had I not got the positive report. It only cost me $350.

In your case, you have some holding power. It is the combo of tax benefits and small +ve yields that will make your investment worthwhile. If you're lucky, you get cap gains down the road and that is the icing on the cake.

the hassles you go through is the price you pay for the gains. If you don't want hassle, then you have to accept a small gain, like equivalent to leaving your money in the bank for 3% interest.

Good luck,

KY