21 Oct What to look for in a commercial property
Everyone has been raging about residential property but while they’ve been doing that, commercial property has been sitting in the background quietly, until now. Economists and media commentators alike are reporting that commercial property as an investment could be the way to go. Commercial property is being hailed as “the next big thing.” The Australian Financial Review has said that commercial property is very very appealing to investors.
So what are the benefits of commercial property?
The first thing to note about commercial property is that it’s more stable than residential property. The reason for that is businesses move less than residents do. They tend to stay put for a long time. That makes it a more lucrative investment than residential property. The associated risks are much lower than with residential property. Furthermore, commercial property is more resilient. If there is a market improvement commercial property will be the first thing to bounce back. This is partially because infrastructure is always going to be required, and partially because when the market picks up, the business world will bounce back before the rest of the market. Ultimately markets are determined by the number of businesses. If business is doing well, then the rest of the market will as well.
The great part about commercial property is it is often in prime locations and that means the value will increase much more than if you bought property in a rural community that wasn’t in high demand. That makes it a way better return on your investment.
Of course there are many more reasons why commercial property is an excellent investment. This is just a small snapshot.