Let’s talk about property investing in this article. It’s no secret that real estate investment has always been one of the oldest, most well-known, and most secure forms of investment there ever was. And while property investing used to be reserved for the wealthy, the same is far from the truth today, with the average Aussie being able to rent out his residential property for additional income or being able to purchase property thanks to light & flexible loan terms and other government incentives for home buyers these days.
Most Aussie investors own houses or units, which makes residential properties an easy way to enter the landlord space. But while this long-held tradition of residential investing will always be the dominant form of property investment, for investors looking for “greener pastures” in the real estate investment arena, you’ll be hitting gold this 2022 by turning your focus on commercial property investment. Why?
Here are a few good reasons:
While 2021 saw extraordinary capital growth across the largest residential markets last 2021, that growth has slowed due to growing trepidation about rising interest rates and high supply that together, may cause a market crash soon enough. Thus, under the circumstances, investors are turning to cashflow assets. After all, commercial properties have higher income yield than residential ones.
Rapidly rising interest rates are a current concern this year in the real estate environment, and the rise is expected in commercial property as much as in residential; but no one expects increases to be substantial in the commercial sector.
Couple low interest rates with high relative yield, plus the security of a long term lease typical of commercial agreements, and you’ve got yourself a gold standard investment.
The past two years of pandemic allowed us to identify the most flexible and resilient business models. Businesses that, for example, could quickly switch from walk-in to online & delivery-based services survived the pandemic. Hence, as we progress into 2022, we have more certainty about what sort of tenants can endure crises, which is the commercial real estate we should be seeking.
Reopening of the Economy:
As it becomes clearer & clearer that businesses are now in the process of reopening after the “pandemic hibernation”, activities are set to keep increasing, which is of course great news for the commercial property investor.
After reading this article, you may now be feeling excited to get into commercial property investment. But with every investment of course comes the necessity to do proper research before diving in. So, if you’re new to commercial property investing, get in touch with us at National Brokers Network, the firm with over 60 years of real estate service & experience.
We’ll give you sound professional property advice, FREE OF CHARGE & no obligation.
Ask us about our Commercial Property Buy or Sell Online Listings and REGISTER FOR A FREE ONLINE PROPERTY LISTING (Australia) as well, if you want faster results and your property sold at the best possible price.
Call us today.
National Brokers Network:
17 Terrain St., Greenvale
Phone: 03 9226 9222