Horses for courses (not Melbourne Cup)

Discussion in 'Commercial Property' started by Scott No Mates, 31st Oct, 2021.

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  1. Directly invest in a couple of CIP - 100%

    7 vote(s)
    87.5%
  2. Private Syndicate or JV - 50%

    0 vote(s)
    0.0%
  3. Private Syndicate or JV - 33⅓%

    1 vote(s)
    12.5%
  4. Private Syndicate or JV - 25%

    0 vote(s)
    0.0%
  5. Private Syndicate or JV - 10%

    0 vote(s)
    0.0%
  1. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia
    Throwing it out there - commercial is a different beast to residential property ownership & risk differs enormously from residential properties.
    • WALE Risk
    • Vacancy Risk
    • Incentive Risk
    • Economic Risk
    • Inflationary Risk
    Risky business these CIPs.

    When it comes to investing in CIP, diversification is key however how do you balance your risks?

    CIPs may cost more than many residential properties but how should you manage your risk? Should you buy your one or two and risk either or both suffering long term simultaneous vacancies or buy a sizeable stake eg 10-25% in several CIPs (private syndicate) to diversify and give up control yet reduce your risk of zero income?
     
  2. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    3,345
    Location:
    Brisbane
    You have a mix of lessor's interest (covering twice the interest) , residential and CIP totalling 117 tenants (covering eight times interest) multiple types of tenants ,buildings , in 5 cities and 3 countries.
    Then you can relax :p
     
    Scott No Mates, Stoffo and Cousinit like this.

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