hi all
what are the differences between commercial deal and residential deal.
I have a reasonable understanding of a residential deal.
Commercial deal is different i actually dont follow through on these even if i see the numbers look good. Apart for such things as the tenant pays most or all of the outgoings what are the traps that one needs to look out for or is this something that a solicitor needs to check out.
I have read that there are more traps with a commercial deal and risks.
Be interested to get some feedback.
regards all
alfG’day Alf…
Looks like you came a close second.
Someone once asked me what was the difference between being a Real Estate Agent in Residential Property and the guys/gals in Commercial…
I recall saying that in Residential I was dealing with people and the Commercial guys dealt in bricks and mortar.
Commercial R/E may give a good yield but from my experience it doesn’t match the CG in residential.
Plenty to be considered Alf….A lot of money may be tied up in one building.Lower LVR generally.
As area ages, replaced by newer buildings and tenants move out.Unless you renovate and upgrade..big $$$.Business goes bad, your tenant closes down and you are left with prospective tenants thinking.. ” what went wrong with the other biz. maybe it’s not a good location”.I guess it depends on the industry the tenants are in…but BIG changes today, as more people work from home, this may make some office space redundant.
Canberra is a good example…in the ’70s every suburb had it’s own busy little shopping complex.
Today they are an eyesore…Newsagent closes, chemist closes, others struggle with less traffic and your left with a battling “corner type shop” selling a bit of everything.AS complex as us humans are, I’ll stick to Residential..but that’s just for me.
Good question
Cheers
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]
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