$700k buy one home+ income or 2x cross lease?

[Vanillacola]

As above.

If you can buget $700k, would you buy 1x home+ income or 2x cross lease?

Which has better capital gain?

Please advise.

[elguapo]

I'm not convinced there is much difference either way capital gains wise. The cross lease option would have an advantage that you could sell them separately.

[cube]

Cross lease gives you more flexibility down the track.

[Rosco]

Are you getting a good discount on one and therefore some initial capital gain?

Home and Income is obviously great for income, but capital gain is the possible issue. Your market to sell is limited to investors or big families. Investors are hard to sell too, so this might really reduce your ultimate selling price.

If you buy the one property then build the income, this can give a good capital gain if done well for a Home and Income.

My personal guess is that the Cross Lease would go up in value more over 10+ years. But only time would tell!

Ross

[Craig Pope Mortgages]

I would go for 2 x cross lease so that I could sell one and keep the other if times got tough. Plus it gives two chances to add value as opposed to one.