Does anyone know what are the pros/cons re commercial investment? Do you need to buy as a company/trust/individual. Commercial attracts GST?
Interesting question I will also be interested in the right answer … murray
….Im a newbie too, but I can add something to your question anyway…
You would be only able to get around 65-70% loan, so you pay a higher deposit. With a Residential Property loan you should be able to borrow more, ie 80-90%.
Also in Commercial Investments, the tenant pays for the water and i think the rates…. damn I shouldnt have left the book at home today…...This is where the experienced investors reply and add a more complex answer…
Im only about 1/2 way through Steves Book, this is what Ive picked up so far…..
Regards,
Arty.
[]Commercial property tends to have higher yields, such as 10% from rent, plus lower costs (not having to pay water etc.) The leases are usually for a longer term (5-10 years), but if you get a vacancy, these tend to be for longer periods also. Just droping the rent a bit doesn’t always help.
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
Antoin,
with questions like this you will get a much better response if you post it on the general property forum. Alot more people read it.
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
Fair Call Antoin,
Is there a site where you can get a general overview of average purchase prices for commercial ppty. I actually have been thinking that commercial ppty would certainly be good to have as part of your portfolio due to the greater possible return, although some other factors to consider are that capital growth is as great as what the residential market is (well i don’t think so as marketability isn’t as great due to niche markets), not sure, would certainly like to know more….only new to the whole investing thing.
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