I'm just going to say it - commercial property is a better investment than residential property.
Yes, it’s a blanket statement.
But If you’re in Victoria, for cash flow I do believe in most instances, this is the case.
I’ll give you 3 reasons to think about.
Think about the compliance restrictions now in place and about to get more stringent for residential investment properties in Victoria. Ask your property manager for the proposed changes coming up or click here for the minimum standards.
Longer tenancies in commercial property. Businesses generally lease out premises for years, unlike residential property which in many instances rotates tenants every 12 - 24 months incurring fees and stress.
Business owners are generally looking after and maintaining the property to a higher standard considering they’re running their business out of it. They rely on the site for their revenue so they’ll be maintaining it accordingly.
I promised 3 but I’ll give you 4…
4. Higher yielding sites than residential. Commercial property is known for its cash flow since the rental yield (ultimately the net profit you make) is higher than Residential. Tenants pay all outgoings.