Why Commercial Property Investment?

ByJohnSageMelbourne

Forseveralyearsnow,businesspropertyhasactuallybeenresoundinglysurpassingothertypesofpropertywhenitconcernsinvestmentreturns.Investorsarerewardedfortheirinsightintothepropertymarketandcanenjoythemonetaryadvantages.Iwishtogothroughthethreereasonsthatbusinesspropertyisthewaytogo.

Factor1—BetterPerformance
Industrialpropertygivesyougreaterreturnsonyourinitialinvestment.Mostinvestorsmakemorethan3timesasmuchinvestinginbusinesspropertythantheydoondomesticproperty.It‘snotuncommontogetanywhereinbetween8%and12%grossrentalyieldforbusinessproperties—it‘strulyanobrainer!

Reason2—LowBarrierToEntry
Thecommercialpropertymarketiseasiertobreakinto.Wheninvesting,commercialhomesaretypicallylowerpricedcomparedtohomes,soyourinvestmentmaybesmallersized.Acarparkcancostaslittleas$80,000,asopposedto$400,000foranurbanapartmentorcondo.

FollowJohnSageMelbourneformoreprofessionalpropertyinvestmentadvice.

Factor3—SuperiorTenants
Whileadomesticoccupancycanturnovereverysixto12months,businesstenanciescanbeanywherebetween3andtenyears.Tenantsalsonormallystaylongerwhenthey‘veboughtpersonalizingthefacilities.
Inaddition,businessoccupantsalsosatisfymuchofthecoststhatyouwouldtypicallyneedtopayasadomesticfinancier,savingyouthousandsonoutgoingslikerates,utilities,maintenanceexpenses—andmore!

DoNotAvoidTheCommercials
I‘mabigfanofindustrialpropertyforinvestmentreturns,butlikewithanyhugedecision,yououghttotakealookatallthechoicespriortochoosingwhat‘sfinestforyou.Ihopethispostassistsyouseriouslythinkaboutindustrialpropertyduringyourresearch,asithasconsiderablebenefits.