Hi All,
I have just sold a commercial property unexpectedly to my tenant who made an offer that blew me away. The property is owned outright in my SMSF. I’m looking to purchase another property which will give me a better return as I have another 8yrs before I can access my superfund. I started to look at residential blocks of say 6 units+ which from my research can get me a very good return compared to commercial. The thing I hated about commercial property was that I always to worried about the business who rents my place. If they don’t do well, they go bust and I’m up looking for another tenant (this actually happened and costs me $100K+ in rent arrears etc). If I bought a block and 1 tenant goes bad, then at least I have all the other tenants paying the rent. Does anyone have any comments or suggestions about unit blocks vs commercial? As I will be entering retirement age in 8 yrs I don’t care much about capital growth, most important is the return as I will be living off this throughout my retirement. Much appreciated.Hey Mate
Really simply this goes to the eggs in basket speech, you have already hit the nail on the head, One property can loose a tenant and your stuck without that ongoing income, diversifing with several will then decrease risk by spreading it and also may hold a simular level of income.
The real question is simply, getting exactly what you want for a fair price with a stress free return for your retirement in 8 years. Is this correct?
This should not be hard in any way, depending on the finer details.
Happy to discuss this in depth over the phone (if you would like that feel free to email me)
Thank you for your time.
Kind regards
Jaxon Avery
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
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