Can you buy a CIP under $1M. Obviously the answer is yes. The next question is how good an investment will it turn out to be. I manage quite a deal of CIP for a wide variety of landlords. Some have had their choice confirmed as good ones, others not quite so good. When I look at our RESI landlords, I can probably make the same comment.
It all starts with where you are when you start. It’s obviously easier to start with RESI, with loans available with higher LVR's than CIP. The other issue is that usually, its shorter vacancy between tenants in RESI than CIP.
I think the age old question is still there. Do we go for return or capital growth? Return you can be closer to be certain of (depending of non-default by tenant) however capital growth when it kicks in can be a real accelerator. So when we start, maybe a combination of both.
When you get some serious assets together, then choices are available.
I believe Dazz has of late had the benefit of combining with family. I am sure others have done that and found that when family and money come together it has not worked. When it does work, I do believe that can be another accelerator.
Recently I have been receiving emails with syndicates available. For a fixed sum, you own a portion of a property and the syndicate has a preplan to sell with in a certain period. The returns to my surprise are usually above 10%. I have no experience with them so mention them with caution.
Dazz, I was blown away reading that story. It was ballsy to take it on, however being so personally exposed no doubt was troubling. The worst I have experienced, was arriving home to open a small parcel, to find a shot gum shell, with a message attached, next ones coming "airmail". Never found out who did not like me
Keep posting your achievements; I am sure that they will inspire people out of procrastination.