Most wealthy individuals all have investments in commercial property. Serious investors collect commercial properties. ‘Retail’ or ‘mum and dad’ investors collect residential properties. Fewer investors own commercial property, but these investors make far more than what investors in residential property make.

Why buy commercial property?

Commercial property has some advantages over residential property:

  1. Landlord friendly laws. Residential tenancy laws favour the tenants. Often at the expense of the owner. Commercial leasing laws operate in the other direction. They are almost ridiculously landlord-friendly. A commercial tenant can expect to pay all the landlords expenses of owning the property from legal fees to council rates and land tax.
  2. Longer rental terms. Residential leases are typically one year one. Commercial leases tend to be for a minimum of three to five years. This means that the trouble and expense of finding a new tenant happens less frequently.
  3. Less competition. There are fewer people investing in commercial property, so you have less competition when it comes to buying. Every man and his dog buys residential property and they often get emotional and overspend. This can make acquiring stock time consuming and difficult. Commercial investors are all about the money and tend not to be emotionally involved.

Arming yourself with an experienced commercial lawyer goes a long way to mastering commercial property. Lawyer up and enjoy above average returns on your money.

Author:  Eric Kalde

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