All Topics / The Treasure Chest / Non residential property

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  • Profile photo of DanTheManDanTheMan
    Member
    @dantheman
    Join Date: 2003
    Post Count: 100

    Can someone please tell me what rental yields one can expect from the different types of property (eg. Commercial, Industrial etc).

    What about capital gains, how do these compare to residential?

    Thanks in advance.

    Dan.

    If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.

    Profile photo of ArtyArty
    Participant
    @arty
    Join Date: 2003
    Post Count: 884

    Ive wondered about that too.
    What is the difference between Leasing a house to tenants or leasing a warehouse to a company ?

    You would still purchase the property, and positive gear the lease payments. But in a bigger scale than a house/unit.

    just a thought.
    Arty
    [:0)]

    Profile photo of investroninvestron
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    @investron
    Join Date: 2003
    Post Count: 92

    the return from commercial or industrial is usually higher than from residential, but the risk is higher, the bank will usually only lend up to 65% of their valuation and if your tenant leaves – lease or no lease, it may be difficult to find another, reducing the rent by $10 will probably not help as it does in a house.

    remember as always the bigger the gain the bigger the risk.

    Profile photo of MelanieMelanie
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    @melanie
    Join Date: 2003
    Post Count: 382

    This is a piece of string question ….

    Residential approx 3-6% in the inner city seems normal, compared to approx 10% on commercial for reasons above.

    Any other offers?
    Mel

    Profile photo of Lawry73Lawry73
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    @lawry73
    Join Date: 2003
    Post Count: 123

    I foten wondered too and tempted to get a commercial property. But I think it is difficult to rent out in commercial offices/shops because the requirements are quite specific.

    I was hesitant because I might have a vacant office for a longer time compared to residential, of course the location matters

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