Purchasing 2nd I.P. advice

Hi all,

Just after some advice on purchasing a 2nd investment property. My partner and I currently have an investment unit at Harris Park which we purchased last year with the help of Jacque from House Search Australia.

We are now looking at purchasing another i.p. property and have a budget of around 500k to spend. Just wondering if we should buy another unit (thinking inner -west where we currently live) or spend the money on a house in western Sydney (perhaps Blacktown area)?

Our current I.P is almost neutrally geared and we would prefer not to purchase a second property that was quite negatively geared at this point in time. At the moment we ourselves are renting, living on one income while I complete post-grad study as a SAHM. Within the next 5 years as I return to work we would ideally purchase our PPOR in the inner-west where we are now. Therefore, we are considering our next purchase in light of our current situation whilst also trying to plan for the future. Something that would give us reasonable capital gains and would not eat into a good portion of our income would be ideal.

Thanks

 

Hi Kelliedlv
Prices aren't going up at the moment so I don't know where the capital gain will come from. Why don't you wait a little longer to see how things are going with our economy and interest rates?

 

Hi Kelliedlv

I think that rather than rushing in an purchasing you need to do your homework on both areas that you are considering. Speak to Jacque she will have an idea of what is happening in the market. At the moment, the prices are fairly steady and there are some good properties to buy when you look around. I understand Billv's points, however, when is it ever a good time, there is always something that is not 100% perfect. Just as long as you do your homework and make a decision that is right for you.