Commercial Property Investing

Commercial Property Investment

Commercial property investment  has been an area where a lot of investors have  never ventured, and a lot of Australian investors would be surprised to know  that they are already  invested  in commercial property.  Typically most Australian's have an investment in commercial property through listed property trusts held within their superannuation unit trust accounts.  This is not often an obvious investment but it is an area you must investigate before proceeding further.

When you are looking at your portfolio and trying to decide how much investment in this asset class you would like to make, you need to take into account your current superannuation investments. Once you realise that you have this option available to you, you may also decide that direct commercial property investment, through purchasing your own set of retail shops for example, is not the best option. You may want to simply increase your commercial property investment exposure through your Superannuation fund.  Either way you decide to go you need to understand the risks and rewards of commercial property investment. We have listed a few below for you to consider.

The negatives of Commercial Property Investment;

  • Low liquidity
  • lack of pricing information
  • High ongoing costs
  • Higher Management Fees
  • GST implications
  • Long-term periods of vacancy

 

Like any investment there are also the positive sides and these consist of;

  • Strong Returns
  • Stability of Income
  • Longer Tenancy agreements
  • Exposure to different sectors of the economy
  • Tax Benefits
  • Hedging against inflation

When if comes to educating yourself on the different options available, we have two very popular Commercial Property Investment books we highly recommend you consider.

Commercial Property InvestingCommercial Real Estate Investing by Dolf De Roos

Whether you're a novice or an experienced residential investor who's ready to take the next step to bigger investments and higher profits, Commercial Real Estate Investing is a smart, practical guide to getting into the game—and winning big.

How Investing in Commercial Property Reall WorksHow Investing in Commercial Property Really Works by Martin Roth & Chris Lang

Written by two of Australia’s leading investment authors, How Investing in Commercial Property Really Works will provide you with everything you need to know about investing in property and how to work the ever-increasing competition in the market to increase your wealth and meet your financial goals.