Situation - $1 cash and $3 mil serviceability. Based in sydney region. PPOR market value of $2.5. No investment property. Early 40s. Both on Highest MTR. Investment goal - Looking buy and hold investment (house) with focus on CG - target avg 8% per annum over next 15 yrs. Investment options 1) Buy 3* $1- 1.2 mil house - one each in Melbourne/Brisbane/Western Sydney 2) Buy 2* $1.5 mil house - one each in Melbourne Eastern and south eastern suburbs ( seems to attract wealthy/ more affluent home owners, I was looking at glen waverley due to good school but 4 bedroom house is now $1.8+ ) and Hornsby region ( not bluechip like northshore but near bluechip) 3) Buy 1* $2 mil in Sydney bluechip and $500k *2 in Brisbane region (logan area) 4) Sell current PPOR for $2.5 mil and buy new PPOR in bluechip area like gordon for $4 mil and but an investment property of $1.5 mil in Hornsby 5) Buy 6* $500-600k house in Brisbane, Adelaide and regional NSW Thoughts and suggestions?
Yes option 5. It should give more diversity, less capital concentration, more cash flow, more access to equity, more depreciation and tax benefits and more importantly should give you much better exit options, especially if/when service ability/ yield compression becomes a problem. It will be easier to transfer loans, pull out big chunks of cash by selling for partying, living, superfund and investing in other high yield or growth assetts which ever is required.
Either 5 or 1, good diversity, take advantage of multiple markets rising, or when one isn't doing great the others pick up the slack. The other options you can definitely make money if you do it right, but you are putting a lot of financial eggs in specific pockets.
