Is Investing In Commercial Property a Good Idea?
by Mish Daniel | Free Information
Whether it’s residential or commercial, any property has the potential to be a good investment idea.
But when considering your return on investment, commercial property often produces higher yields than traditional residential opportunities, although there are more risks to consider.
Commercial properties are defined as those that are used solely for business purposes. These include retail stores and shopping centres, warehouses, industrial buildings and offices.
Why Invest In Commercial Property?
Whether you’re brand new to property investing or already have a residential portfolio, here are some reasons why you should consider investing in commercial property:
Commercial property has the ability to bring in high returns because of some unique features:
- You can pass on many outgoings to the tenants (for example, water, rates, electricity and waste management costs)
- The length of tenancy is long term (3-5year leases instead of 12 month)
- Consistent yearly increases in tenancies
If you choose the right properties, you can make monthly cash flow on autopilot. You cannot compare the earning potential of a commercial building to that of a residential building. Commercial buildings have an annual return of the purchase rate, between 6% to 12%, while residential properties fall under 1% to 4%.
There are plenty of investment opportunities in commercial property
With the growing population of Australia, new residential neighbourhoods are continually being built. This has a natural flow-on effect on the development of commercial spaces, as these facilities are required to be built to support the growing communities.
In comparison, commercial properties have several options to invest in, from office buildings to warehouses to shopping centres. With the help of a commercial property buyer’s agent like Revolve Commercial, you can decide what to invest in by choosing from a range of locations and building types.
The public eye is on your property
Because business owners have an image to protect, therefore they are more diligent in maintaining the image of their property.
This allows the commercial tenants and property owners to have the same interests – the tenants in the reputation of their business, and the owner in the value of their property.
Advantages Of Commercial Property Investment
Stability and Income Consistency
Commercial properties deal with longer leases (3 to 10 years), while residential properties are usually held on short leases (6 months to 1 year). The constant and stable income streams make profits more predictable.
Commercial property investors have a higher chance of earning a higher income than residential property investors. Its enlarged space gives the business owner the chance to divide the space and earn off more than one person.
Commercial property investment holds lesser risk and has a safe environment for business operations.
We have come to see the advantages of commercial property investments, but there is also a level of risk involved. Be sure to seek assistance and advice from commercial property investment experts like Revolve Commercial.
Is Commercial Property A Good Investment?
The value of commercial properties isn’t as volatile as stock market investments which makes it a good investment. Commercial property investments have a higher return when compared to residential property investments. But, whatever your property investment opportunity may be, be sure to do your research. You can learn more about commercial property investments through our Free Wealth Growth Master Plan.
Commercial Property Investment Services
You can trace good commercial property investments back to strategic decisions. A stronger relationship calls for a better success rate in any business, so we create lasting relationships with our clients. It helps us to easily recognise the property investment requirements to better come up with suitable opportunities that fit their investment potential.
As experts in our field, we understand what it takes to achieve the profitable outcomes of your investments. The strategies used will help reduce risk and fasten the transaction time.
We can handle any commercial property investment options by carrying out the property transaction for you. Our mentorship program can also guide you on your way to independently learning how to buy commercial property. If your goal is to invest in commercial real estate in Australia, our team can use its undeniable expertise to bring you impressive results.
Suppose you’re looking to buy a commercial property. In that case, our expert acquisitions team can help you with everything from determining the location and desirability of a property to completing the necessary surveys, insurance, and compliance.
You will excel in the commercial property investment sector as long as you use the right education and advice, as it will go a long way for you.
Revolve Commercial helps clients and investors like you step into their dream lifestyle by building their commercial investment portfolio with safe, cashflow positive properties. Not only do we walk you through every step of the way, as part of our buyer’s agent clientele, you also get access to our comprehensive education, giving you the opportunity to learn in-depth along the journey.
To find out what your next steps are in your commercial journey and get a free 12-month roadmap tailored to you, all you need to do is simply answer eight simple questions!