Hi I am newbie here to this forum and also to commercial property investment.
Was just wondering how I can find the right commercial deals to buy with good return?
Do we have any buyers agents who will show us the right commercial property deals? – we do see a lot of them for residential properties.
Where do I look for the commercia properties?
I am looking at realcommercial and cannot find anything real good.
Any advise or leads is much appreciated.FredWisleyParticipant@fredwisleyJoin Date: 2016Post Count: 12
Start from research, you need to get a general understanding. There are different types of commercial properties: buy-to-let apartments, student accomodations, high street retail, offices, supermarkets, retirement homes, shopping centres and motels.Look at this article https://tranio.com/traniopedia/tips/property_investment_strategies/ it will help you to realise your options in terms of your budget and expectations about yields. Pay particular attention to risks and liquidity (it shows how fast you can sell your property without discount)
Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
- This reply was modified 5 years, 4 months ago by FredWisley.
There are buyers agents who source commercial properties for buyers – I’ve worked with David Mews from REvaluate who assists investors source commercial property for investment, SMSF etc. http://www.adelaideba.com.au/#!commercial/ctzx
Compared to residential property, commercial is quite specialised and the average investor will generally not have the same laymans knowledge which is needed to ensure good decisions are made – so using a BA can be a very valuable choice.
- This reply was modified 5 years, 4 months ago by Corey Batt.
Thanks Corey and Fred.
I was looking at suburb Lavington for cheap commercial investments.
they were all very tempting but did not understand how every CIP can be so profitable.
Any ideas or suggestions?
Have you considered commercial property in the United States. Its easier there to get finance on commercial than it is residential. If you are looking in Australia to buy quality commercial is expensive stay away from cheap properties like warehouses and factories as often they are the first properties to lose tenants in any downturn. Without tenants what are these properties worth?
Never thought abt commercial investing in US.
How does that work?FredWisleyParticipant@fredwisleyJoin Date: 2016Post Count: 12
Buying commercial property in the US is easier than residential. In many cases you can still get non recourse finance. That is where the loan is taken against the property rather than the people taking out the loan. However we have just bought a 26 unit complex for 1.3 million nd you can by a 6 unit complex for around $350,000 to $400, 000 with returns of around 8 or 9 % net. happy to discussfxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
Buying commercial property in the US is easier than residential. In many cases you can still get non recourse finance. That is where the loan is taken against the property rather than the people taking out the loan. However we have just bought a 26 unit complex for 1.3 million nd you can by a 6 unit complex for around $350,000 to $400, 000 with returns of around 8 or 9 % net. happy to discuss
Do deals with above performance still available? Where or who I can enquire more about them?
Do you hedge your forex risk?
Yes they are
The 26 unit apartment complex was closed about 5 weeks ago
Smaller properties are available. It is always important to do your research carefully. However I have people who can source these deals from the banks and other sources.Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
Return is related to risk (on many levels). Some are: finding a replacement tenant (time, quality etc), competition, functional obsolescence, zoning pressure.
I recently completed a lease renewal for a regional commercial property where the rent dropped 10% – so all is not rosy in this market. The lessor was more concerned with continuity of the cashflow rather than the rate.