Whether you’re a property investor or a business owner, Investing in commercial property can be a great next step in your journey.
As a property investor, commercial properties can be extremely attractive. Relative to residential investment, it’s not uncommon to see a commercial property generate a yield as high as 5-12% while passing on a significant portion of the overheads to the tenant.
While there are definitely positives in commercial investment, there are some drawbacks. Commercial property is far more dependent on market conditions with a relatively high level of elasticity. This means periods of time without a tenant can be far longer than a residential property. Additionally, lease terms are far longer than a residential lease. This can be a positive or a negative depending on overarching market conditions and how your lease is structured.
As a business owner, free cash on the balance sheet can be an efficient utilisation of your money. Purchasing the property you are currently leasing could be a great way to utilise that money and also to increase the efficiency of your business.
Our goal is to guide you through the process of commercial property ownership. We have the ability to provide great advice and an ideal debt solution for your circumstance.