Granny Flat or Commercial Property?

[bonanzawealth]

With $200,000 what will be the better option?

1. buy $500k Resi for $100k deposit at 20% LVR and around $25k costs then build granny flat approx $75k then rent both out

OR

2. use $175k deposit for $525k CP with 70% LVR and around $25k costs then hoping you get 8% Yield?

I'd like to know what your opinion. cheers.

 

[pinkboy]

With $200,000 what will be the better option?

1. buy $500k Resi for $100k deposit at 20% LVR and around $25k costs then build granny flat approx $75k then rent both out

OR

2. use $175k deposit for $525k CP with 70% LVR and around $25k costs then hoping you get 8% Yield?

I'd like to know what your opinion. cheers.

Hope is not a strategy!


pinkboy

 

[thatbum]

Which option do you know more about?

ie. which option would you be best in being able to implement effectively?

 

[Scott No Mates]

Development risk or tenant risk?