Multiple cheap properties vs. one expensive property

Never is a long time covering all strategies . There are some very effective strategies where a low yield ( for a certain time period) is a given in order to realise a much larger chunk of a pie.

 

You're right Leo... I was commenting on Chan's math on a buy and hold strategy - which is now a tough call.

 

My 2 cents would be to do 80% lve and save mortgage insurance. Lending is much easier with no lenders mortgage insurance.
Be close to transport... trains.

 

Some interesting points made in the thread. I'm looking into buying some property as investment some time middle 2021 given I still think the market will fall when government support runs dry. I could borrow anywhere from 600-750K for ONE property. Do I buy one small townhouse/house which I like in the inner/middle city of Perth. or one in a developing area like Balcatta and one somewhere like Ballarat, Tamworth etc.

The advantages mentioned are key considerations but also the higher rental yield will allow me to borrow up to 800K for the two properties.

Development opportunities in prime locations are too unattainable for me as rental yield is far too low and the borrowing is too high.

One property I was looking at in Leederville WA was 700k but rental yields are about $500. This would mean I'd be $15K down each year on costs not including interest.

According to the borrowing power I went through with my broker I can't see why I couldn't pick up two 400k properties in alternate states and avoid any land taxes.

 

400k will buy you something with development potential in Brisbane with a reasonable yield.

 

Here is an old thread that I started on cheapies v expensives

Strategy: Consider multiple cheaper Properties Strategy: Consider multiple cheaper Properties

 

Everyone has a different opinion on cheap/expensive

Everyone has a different opinion on "value"

My worthless opinion? Stay in your circle of confidence and stick in your lane.

 

Or if one prepares to change the course, be prepared to pay the "school fees". I have paid my fair share, some more expensive than others, but always a good lesson learned.

 

Depends which one will grow faster.

My most expensive property has tripled in 7 years (millions+ when I bought). Had formal offers I turned down.

In same time some of my cheap properties ($700-800k ones) have gone up 30-40%. Bad allocation of resources in a resource limited world.