I am a new investor and never invesed in RE before. I've been given a budget by the MB as below: 1- 750K for one IP 2- Split it in two and get 400K and 370K respectively. Which is a better option considering I may sell these properties (either one or both) once a certain growth has been achieved. Which is a better option considering if I hold both? The one IP means one search, one recycling cost compared to double effort in two properties. But two means I can diversify by getting one property in WA and one QLD.
see Strategy: Consider multiple cheaper Properties Strategy: Consider multiple cheaper Properties There is also another thread I started on cheaper v more expensive properties - but cannot find it atm
I usually lime to split, but that's a different game Yet oddly the results are similar ! Sometimes you can do really well Other times you get a dud draw/tenant.........
@Stoffo what @Terry_w had posted earlier and what people discussed in that post. Split doesn't seem like an easy strategy to implement and execute. Buying something good in better location with that split will be another question.
Many variations. With having 2 IP's you can have 2 of everything (hws, rates, maint,PM fee's) but the plus side of having 2 IP's is that if one is empty You can still have some income. Yet having 1 more expensive IP means you may have better tenants, but if it's empty you have no income.... When you get to 5 IP's the lack of income due to vacancy risk reduces
