Investment property

[faible]

Apart from diversification, what do others see as the benefit of commercial property? For me one of the main ones is a hopeful set and forget long term 10 year lease.

The main thing is that you're trading off the capital growth of residential property for significantly higher rental returns. Banks are a bit more lenient with loans for leased commercial property than residential as well, but there's a bit more cost in managing the leases and such with commercial generally.

Residential is a bit easier if you're a novice, since people tend to fall in to it via buying a first home, then moving to somewhere bigger down the track and retaining that initial purchase. Commercial is more deliberate and has more risk given the lack of capital growth means if you pick a dud you can't easily recoup your losses.

 

[Deliverance]

Yeh I thought that's what it might be, a % stake in a commercial property with maybe an existing lease/tenant? Perhaps existing owners willing to sell of a percentage of their asset.

Apart from diversification, what do others see as the benefit of commercial property? For me one of the main ones is a hopeful set and forget long term 10 year lease.

Commercial investment adds to society, unlike residential investment. So you can feel good about yourself by not contributing to housing unaffordability for young people.

 

[The Edukator]

I'm not ready to buy yet, but have started to research into commercial property for down the track as maybe a next investment interstate to diversify .

I'm a little unsure of something though, if you go to a site like realcommercial for example, you have the option to either search under "buy" or "invest".

I'm not quite sure what the difference is there?

There's a few good books out there that have been written recently if you want to learn more about commercial property. In short, a lot of the value is tied to the strength of your lease.

As an owner of residential and commercial property i get far more satisfaction out of commercial.