In the same street

[battle on]

Hi all just thought I would get some opinions on buying in the same street. I have 2 ip's in the same street that are currently rented around 6-7% with cap growth at the moment of 10% so not a bad return. There in a good street, bad suburb area however I have had excellent tennants over the past 2 years and they have no desire to move out.
Another property has become available in the same street which with $10000 deposit would return a positive cash flow.
Do you think 3 in the same area is too much or should I bit the bullet and go for it. It would be my 5th Ip

Thanks all

Dave

 

[lizzie]

if the figures stack up - then go for it. by owning a good portion of the street you have more control over the direction the street takes - for the better with some nice landscaping and painting etc. then the street will get a good reputation and may become sought after.

my mother did something similar where she lives - loved the ppor house but didn't like the street. so, every time something came up for sale in the (short) street she bought it, renovated and let it to good tenants. the street is now (apparently) in demand by good tenants, she gets to choose her neighbours, the surrounding houses are nice to look at with lovely gardens and the entire value of all the properties in the street have gone up.

we discussed this sort of thing briefly in a "gentrifying suburb" thread not long ago.

 

[Sultan of Swing]

Sounds good to me, Battle On.

When you've bought it, would you mind if I ask which suburb it's in?

Cheers

 

[battle on]

Yes Lizzie the other houses in the street are looking better every time I drive past they are really starting to take some pride in where they live. There are a couple of other streets doing the same in the area so I think it could be a good investment.
Its at the other end of the state to you Sultan of Swing but could also be in your backyard if you get my drift. Will keep you informed.

Dave

 

[Sultan of Swing]

Its at the other end of the state to you Sultan of Swing but could also be in your backyard if you get my drift. Will keep you informed.

Dave

Yep, that's why i asked for you to tell me AFTER you bought it.

Cheers

 

[tobe]

I also have two houses in the same street in Ballarat. They were both cashflow neutral at time of buying, and had a 20% cg in the 12 months from purchase to the 2003 'slump'. Since then they havent done much. I have had one with the same tenant the whole time, and a couple of problems with the other (nothing landlord insurance couldnt fix). I have recently bought in Brisbane because I wanted to diversify. Having saiid that, if I got the chance to buy again with the same sort of cf I would, however the street is already doing its own gentrifying, so there isnt much that fits my profile.

 

[Bushy]

Battle On
Not sure if it will effect your borrowings, the bank might think to much exposure, a broker forumite might have more info.

I personnally wouldn't unless they were adjoining properties that might lend to developement. In our local rag it was just announced that Telstra has decided to put up a tower right next door to housing, it would be a bad day if it was next to your IP and it would bee a really bad day if you had 3.
Not trying to dampen your enthusiasm but some things you have no control over. We have a couple in one street and I must admit it is really hard to leave the cheque book in the drawer when another property comes on the market, especially when you know it is a good buy, the only ones we will go for will be adjoining.

On a lighter note, How many more do you need before you can call it
"Battle On Street"

Regards Bushy

 

[battle on]

Oh well looks like its gone under contract while still doing my DD so I guess i will keep searching until I find another. All points were certainly considered and still not sure if it would be a good idea but thanks all for your opinions.

Sultan when I said your backyard I meant 'Roberts Hobart', hope to meet one day if something regular starts after Rolf's appearance.

Dave

 

[handyandy]

I have a couple of blocks of units in the same street Does that count.

As lizzie say if the figures stack up go for it.

Cheers

 

[redwing]

As a bonus with a couple of IP's next to each other or backing onto each other, you could possible combine and rezone

 

[Andrew_A]

As a bonus with a couple of IP's next to each other or backing onto each other, you could possible combine and rezone

Yes, it's a nice idea.

Two negatives I can think of (there are more positives imo) are the land tax issue potentially and the lack of diversification that might impact if for whatever reason the houses in question (or suburb) go out of favour.

But the ability to influence a street scape or build a development block is quite a nice thought.