Commercial versus residential

Tony100, you have outlined the downsides to resi and commercial quite well. The main reason people don’t invest in commercial is due to high upfront $$$ required. One can get 95% Loan to Value Ratio for Resi, but as a minimum you usually have to put up 30% deposit for Commercial properties, and in fact usually more!

If you have the money for adeposit, you can do quite well with commercial.

FFComm

I have a number of clients that have done very well out of commercial property. My experience with them is that they do a lot of work upfront, in terms of due diligence and ensuring they have tennants before they will spend anything.

In short, it requires more work upfront, more money and more skill, but the potential rewards are certainly there.

Regards
Alistair

Comm vs Res ??

No comparison, the former wins hands down.

Have a squiz at some of my earlier posts on this subject.

I can remember my wife’s uncle some years back…when we were gung-ho on houses saying

“When you’ve finished mucking around with those and wish to get serious, have a look at Commercial…”

I suppose that was his way of saying, get some capital and experience behind you. It was the tip of the iceberg for us.

I wish older men would enunciate themselves more clearly though…without all the bluff and semantics. They sometimes uncover diamonds for you, but unless you can recognise that tip of the wealth iceberg, you’ll sail straight past it.

Cheers,

Dazzling

“Go hard or go home”

When I thought about commercial. a very reputable commercial agent told me to only invest when I could afford property with National tenants. I’ve got freinds with small commercial and they are always looking for a tenant and have loooong vacancy periods. It’s because of the specialised layout and fittings not having a generic appeal, unlike a house or apartment.

Why not keep doing the duplex thing, I believe it’s a better bet than low cost rural, it’s low cost for a reason.

There’s a book by Martin Roth and Chris LAng titled “How Investing in Commercial Property Really Works”. It is well worth a read.

I have found that the majority of serious property investors are involved in Commercial Property, residential is usually only a stepping stone.

With commercial you need to be able to resolve problems and cater for the needs of your tenants. If the tenants can make money in their business, you will make money. It is extremely rewarding when a business thrives and the tenant asks you to extend the building for them to accommodate their growth.

Cheers
Jeff