When you are looking to invest in retail property, a factory or an office, its likely you will require a commercial loan. A commercial loan is generally secured by the commercial property, and operate slightly differently to your standard home loan.
Working through your lending options can be an overwhelming process. Our commercial loan specialists will be able to cut through the jargon and present you with clear advice and competitive product options.
Whether you’re a seasoned investor looking for a new opportunity, or you’re after other ways to get your foot on the property ladder, a commercial property investment may be worth considering.
In this article, we explore the reasons why people venture into commercial property investing, and some of the areas to be aware of. And if you do decide to go down the commercial route, we can hook you up with an investment loan that suits your situation and objectives!
1) Attractive yields
If your focus is on generating income from rent, investing in commercial property may be the way to go. Commercial properties typically return a much higher rental yield than residential properties – usually upwards of 7% return. In comparison, the average residential rental yield across Australia’s capital cities fell to 3.2% in February 2017. (Rental yield percentages are calculated on the amount of rent compared to the cost of the property).
Additionally, the costs of owning and managing a commercial property are usually lower, because most of these costs are covered by the tenant.
2) Potential to target growth areas
Commercial property investment often provides the opportunity to capitalise on growth areas, both in terms of location and the business economy. For example, a recent report by Deloitte identified that our future business economy is likely to expand rapidly in the areas of communication, technology, hospitals a wide area of other health industries, food processing, private schooling and education
Investing in retail property
Investing in office space.
Investing in an agricultural property.
