EP18 | If You Had $1,000,000 To Spend On Property, Should You Buy 1, 2 or 3 Properties?

21/02/2024 24 min Temporada 1 Episodio 18

Listen "EP18 | If You Had $1,000,000 To Spend On Property, Should You Buy 1, 2 or 3 Properties?"

Episode Synopsis

John and Allan discuss the question of whether it’s better to invest a million dollars in one property or to spread it across two or three properties. They explore the advantages and disadvantages of both approaches, including factors such as rental yield, capital growth, cash flow, and risk mitigation.

Highlights
💰 Investing a million dollars in one property in a desirable area can potentially yield above-average capital growth.
🏠 However, the negative cash flow from such a property can eat into the capital growth and create financial stress for the investor.
💸 Investing in two properties worth half the price each can provide a higher rental yield and make it easier to cover costs.
🌍 Spreading investments across different markets allows for diversification and reduces the risk of loss.
💼 The flexibility of owning multiple properties allows for potential solutions if financial difficulties arise.
📉 Holding costs for two properties can be significantly less than holding one high-value property.
🔄 Selling only one property instead of both allows for capital gains tax mitigation.