Hey guys, been reading these forums with interest for a while, time to see if I can get some expert advice....
I am fortunate to have about $300k equity in my PPoR (my only property) and have been trying to work out what to do with it for a while. I have a lot of questions but will keep this thread simple.
CIP interests me, largely for the higher yields as I don't have much free cash flow. How does the cap growth on a sub $500k CIP compare to a RESI? I know there are a million things it depends on, but in general, do you see more capital growth in CIP or RESIs??
Just browsing realestate.com I've found a $350k 3br RESI in Launceston renting at $435/week which is roughly what, 6.5% yield? I could handle the additional payments on something like that ok, even if interest rates go up. But it seems that it would be fairly easy to find a CIP (or 2) yielding 8-9%.
Not sure which option is better - appreciate any thoughts on the matter!
Cheers,
James
I am fortunate to have about $300k equity in my PPoR (my only property) and have been trying to work out what to do with it for a while. I have a lot of questions but will keep this thread simple.
CIP interests me, largely for the higher yields as I don't have much free cash flow. How does the cap growth on a sub $500k CIP compare to a RESI? I know there are a million things it depends on, but in general, do you see more capital growth in CIP or RESIs??
Just browsing realestate.com I've found a $350k 3br RESI in Launceston renting at $435/week which is roughly what, 6.5% yield? I could handle the additional payments on something like that ok, even if interest rates go up. But it seems that it would be fairly easy to find a CIP (or 2) yielding 8-9%.
Not sure which option is better - appreciate any thoughts on the matter!
Cheers,
James