Commercial property is not as well-known as residential.
If you do not deal with the day-to-day matters of running a business from a commercial building, most people are unfamiliar with the terms and conditions of commercial leases, tax implications and who is responsible for the outgoings (expenses) of the building.
The continuing low interest rates, low bank deposit rates, and dropping yields across all asset classes has highlighted benefits in diversifying investments.
Commercial property with its highly attractive returns and stable and secure cash flow is appealing to those looking to balance their portfolio.
There are a number of ways to get into the commercial market.
In general these require more capital as a deposit than for residential real estate, but the fees, costs, charges and government duties can be substantially less, and the yields higher.
Much has been written about residential property investment but the area of non-residential property (commercial property) is relatively unknown to many property investors.
Most investors feel comfortable with investing in residential property as they are familiar with it - whether it is a house or apartment.
However, new and increased taxes and charges, increased government regulation, and lending restrictions have meant many investors have started to look into other types of property investments in Australia.
Wealthy property investors remain focused on yield in a pervasively low interest rate environment. As a result, assets such as commercial property are attracting their attention.
Commercial property’s stable income flow can offer an attractive balance to residential property or other investments, so it is worth looking for.
