Why Commercial Property?
What you need to know about investing in Commercial Real Estate
There are a number of key indicators and statistics which can assist you in deciding to purchase a commercial investment property.
1. Commercial Real Estate generally enjoys higher rental returns, some typically in the range of 7% - 9%, as compared to 2% - 4% with Residential property.
2. Commercial property Leases are typically for longer periods, some are 2 - 3 years, and others upto 20 years.
3. Fixed rental uplifts are included in many leases, either as a fixed percentage, by inflation, to the market or even a combination thereof.
4. Commercial property is not necessarily expensive, we have properties ranging from a couple hundred thousand to millions.
5. The tenants normally pay the outgoings thus giving the landlord certainty in returns.
6. Commercial property leases are not governed by the Residential Tenancy Act and are treated as a contractual agreement.
7. Protections for landlords can be written into the leases to include maintenance, cleaning, painting and other items.
Alert Property Group can highly recommend a commercial investment for your portfolio, talk to us today to find out how.