Entry Level Commercial Property Investing

In recent times there has been a shift to investment in commercial property, with more and more buyers becoming frustrated by the lack of value in the residential market. As a result, they have started to embrace commercial property investment.

The distinct benefits of owning well leased commercial property investments are clear; secure leases (3 – 5 years), high quality tenants, fixed annual rental increases, and net rental terms. This is where the tenants are responsible for the payment of the majority of outgoings, and importantly comparatively higher returns are on offer, sometimes 5% net or higher.

So what has traditionally stopped private investors, with modest budgets from investing in commercial real estate? This mostly has to do with the perceived high cost of entry into this class of investment. In some cases commercial investment entry levels can start from $400,000 plus for a smaller leased investment property.

If you are considering a commercial property, then obtain advice from an independent property expert, as it is their core business. Feel free to call me on 0418 129 299 for a brief chat. E: pflynn@icpg.com.au www.icpg.com.au