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From One to Two. When to buy the second investment property

Most property investors stop after one purchase1. Now owning even one quality investment property demonstrates an admirable and uncommon preparedness for the challenge of achieving financial security in retirement.  

But will one asset actually be enough to achieve this goal? And after climbing the steep learning curve to buy the first one, are investors who stop there passing up the opportunity to really get ahead?

In this one hour webinar Jarrod McCabe, manager of our property advisory team, and Stuart Wemyss, director of ProSolution Private Clients discuss going from one investment to two, provide the benchmarks a prudent investor should satisfy before ‘going again’ and also provide advice on identifying and securing an asset that delivers a balanced, diversified portfolio.

Key moments

Time stamp (min:sec)

Will super be enough?

1:33

The case for multiple investment properties

7:50

When is it prudent to buy again?

10:40

Setting a budget

17:00

Diversification of assets

25:48

Q&A starts

28:30

How ProSolution works with clients: Wealth Coach

39:50

Ends

42:15

No.

Questions

Time stamp (min:sec)

1

Is it better to build an investment property portfolio inside or out of a SMSF? How do we decide what level of gearing is safe?

28:44

2

Should your second potential investment property be cheaper, so it can be closer to positively geared? Perhaps a rural area?

31:43

3

How much cash flow should one reserve after purchasing the second investment property?

33:40

4

Is it a good time to buy a two-bedroom apartment now that many are still at their off-the-plan price 6 years later?

34:56

5

Is there an ideal purchasing formula, e.g. price vs. rental return vs. loan gearing vs. offset balance to maximise investments?

37:06

6

What are your thoughts about establishing a trust to buy property? Would you use a corporate or individual or corporate structure?

38:40


127.2 % of investors own one or more properties ATO Taxation Statistics 2010-11 (2013), Page 15