Diversifying your portfolio through commercial property in Perth is a secure way to invest nowadays, especially with the massive economic slump and the instability of super funds.
Commercial property market includes retail shops, childcare centres, retirement villages, industrial properties like factories and workshops and of course, office blocks.
If you’re looking into buying commercial property in Perth, here are a few things to consider before you jump in.
1 ) Always consider how much you’re willing to invest, and what you’re capable investing when it comes to buying commercial property in Perth. And always get expert advice before you go ahead.
2 ) What type of commercial property do you want? Will you buy or lease? Where is a suitable location for your property? If you want to invest in an office space, for example, do you want to be in Perth CBD or Osborne Park? you must consider your location very carefully.
3 ) Most commercial property investment is relatively stable and will generally remain stable compared to the other investments. Commercial property is also a great stable diversifier for when you want to explore riskier investments.
4 ) Incomes from the commercial property market are usually stronger than residential and are very secure due to long term contracts with businesses (from three to 20 years). This will depend on how well your tenants business is doing of course, but as long as you are using a professional property management team who have screened your tenants correctly, you shouldn’t have much to worry about.
5 ) Steady growth. Rent is reviewed year by year, commonly increased by 4% or according to the CPI.
6 ) Perth commercial properties can be a lot less volatile than the residential property, however all strong property growth is dependent on interest rates and the state of the current economy.
7 ) Commercial property tenants generally take good care of the property they occupy as this is were they run their business. Which means you can save on any unnecessary building maintenance costs.
8 ) The invested capital return on most commercial properties sits somewhere between 7% and 10% net after costs. So the returns are quite strong compared to other investments.
9 ) Tax benefits. The benefits come in the form of tax-deferred income, so any deductions to do with depreciation and building allowances from your property. Tax-deferred income is seen as a percentage of income earnings, so when the yield is high on property investments, the tax-deferred component also rises.
Where to find commercial property?
Professionals Davenport commercial offers a wide range of commercial property all across Perth. Commercial property in Perth includes shops, restaurants, cinemas, shopping centres, childcare centres, offices, hotels, factories and warehouses. There commercial properties all over Perth, so it’s up to you whether you want retail, business or industrial properties. Websites like http://www.realcommercial.com.au are a useful place to start.
Other sites like Professionals Davenport Commercial can help you find the property your looking for. Set up your parameters (price, location, type of property) and you can browse through a list of available commercial properties.