Pros & Cons: Investing in Commercial Property

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

 Thinking of investing in commercial property? Read this first.

Like many hot button issues in real estate investing, the debate on whether it’s better to invest in residential over commercial continues to divide investors.

Proponents of investing in residential say it’s the least risky option, while those who are in favour of commercial would argue that commercial is safer due to its cash flow potential.

Smart investors of course don’t choose between the two: They look at both to see how it may fit their portfolio.

he case for investing in commercial property now

Higher returns on investment

The average rental return for residential properties across Australia’s capital cities is 3.6% according to CoreLogic RP Data. In contrast, it’s not uncommon to get anywhere between 8% and 12% gross rental yield for commercial properties.

Longer leases

While a residential tenancy can turn over every six to 12 months, a commercial tenancy can be anywhere between three and 10 years. Tenants also tend to stay longer especially when they’ve invested some capital customising the premises.

Do you need more detail on this subject? Head on over to the full article https://www.realestate.com.au/advice/pros-cons-investing-in-commercial-property/ for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on (0432) 132-123.

Thanks,

Arthur