Why Commercial Property is a Smart Investment

Why Commercial Property is a Smart Investment

There is no doubt that you’ve heard over the last few years about the high cost of housing and that it’s near impossible for first home buyers to get on the property ladder. If you thought that things were better for those who already own homes, think again. Yes, your property would have gone up in value and you’ll no doubt be sitting on a nice little nest egg so if you sold your existing home you’d be sure to make a tidy little profit. The downside however is that if your property has increased in value then so too have all the properties around you. That means that even if you manage to sell your property, you will still face some fierce competition if you’re buying a new residential property. Even if you plan to rent it out there’s still a huge risk that you will have a hefty mortgage.

Commercial property, on the other hand is providing to be a wise investment and comes at a much lower price.

Rather than paying upwards of $1 million for a property in the central business district of Melbourne or another city like Sydney, it’s possible to get a piece of commercial real estate for around $200 – $400,000. That does of course depend on the size of the commercial property that you’re purchasing, and the location. Properties within the city will cost more than the outskirts of Melbourne. The advantage with commercial real estate is that tenants tend to stay much longer than residential ones. This is of course because people who are running businesses and don’t have time to move. Not only that, moving could potentially hurt their business if they have established a regular clientele.

It does depend on your needs, but if you’re just looking for an investment that you can buy and generate a reliable income from, then commercial property is definitely the way to go.

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