Commercial property investment

 

​Find the best experience buyers advocate in Perth, we are the best buyers agent in Perth that will help you to commercial property investment in Perth.

COMMERCIAL INVESTMENT

Perth Commercial Property Buyers Agent

We believe commercial property plays an essential part in an advanced investment portfolio. As passionate commercial investors ourselves, we understand what makes a quality commercial property.

There is a lot more to navigate through when choosing the right property so putting in the time and effort for our clients to locate the best investments is paramount.

​Leave it to us to source the property, negotiate the right price, undertake due diligence and streamline the settlement process.

The King of Cashflow

Commercial property, is the king of cashflow positive property investment.

For me, without a doubt it sits right on the top.

For most, it’s the scary beast in the property investment cupboard that they know nothing about.

It’s like commercial agents are speaking another language, cap rates, triple net leases, gross yield, net yield.

This is where the opportunity begins. Most people are focusing on bricks and mortar residential assets, leaving space and opportunity in the commercial world.

Though this is changing at a fast rate as people are cottoning onto the high rental yields and long long leases offered by this asset class.

Let’s look at some example numbers:

Commercial Warehouse:

Location: South East QLD

Lease: 5 years

Purchase price: $750,000

Loan $525,000 (70% LVR)

Interest rate: 3.5%

Net Yield: 7.2%

Passive income after all loan repayments: $27,750/yr or $533/wk clear in your pocket.

 

 

Why I like commercial property:

Tenant pays ALL outgoings - rates, body corp and sometimes your management fees.

 Tenant pays for maintenance on your property.

 Long leases around 3 to 5 years and 10-20 years in the higher value properties.

 Opportunity to find strong international tenants with high financial backing

 Rental increases are built into the lease

 Capital growth increases with the rental increases

Support’s our borrowing capacity which is an essential part of creating a diverse investment portfolio

What’s not to like about it?

Well, with everything there is risk.

‍Vacancies can be long. We allow up 3 to 6 months for a vacancy.  But our cash buffer (funded by tenant rent) and asset selection should minimise the impact of this risk.

‍ Leases can be complicated. This is why we use the best lawyers to review our leases and advise us of any risk.

‍Capital growth can be slower. Commercial property is an income play, we enter this asset class to help boost cashflow in our portfolio and support our borrowing capacity. Any capital growth is a bonus!

‍Changes in infrastructure and government policy. Any change in policy may affect the demand of on asset. This is why we avoid certain asset classes ie. petrol stations, which are extremely lucrative but we believe aren’t an entirely safe future proof asset.

https://www.risepropertybuyers.com.au/blog