The majority of our investors come to us looking for a residential property, however many investors choose to buy a commercial, industrial, or special purpose property when they understand the benefits these types of investment can provide. Below are the main examples of these three property types:
Commercial: office–stand alone; offices–strata; showroom; retail. Industrial: factory–stand alone; factories–strata; warehouse–stand alone; warehouses–strata. Special Purpose: child care; service station; car wash; motel (investment only); hotels (investment only); fast-food outlet.There are many benefits to owning these property types, providing they meet our selection criteria. With longer leases you have no volatility and the security of income from a quality tenant, and cash flow has yields of 8–10% net with compounding capital gains. Management cost is lower than residential (around 2–3% if there’s a single tenant), and often in non-retail property the tenant pays the land tax as well as insurance and rates. These are just a few of the ongoing benefits for the investor.
