Owning and renting out residential properties is a great way to build your wealth and secure your future. Getting into this kind of business is familiar to you especially if your family used to rent an apartment before. But, if you want to increase your wealth faster, then you must consider owning a commercial rental property.
Many assume that owning commercial spaces is difficult to manage. But if you do a little research, investing in a commercial rental property is fairly easy and rewarding. Commercial properties are obviously pricier than residential properties. However, the return of investment is faster if you have commercial spaces instead of residential properties.
Henzells Agency can help you with your search for the best real estate investment in Sunshine Coast. Henzells Agency has been around since 1935 and has helped countless people looking for real estate properties that are for sale or rent. The group can also assist you if you have a residential or commercial real estate for sale.
Types of commercial properties
Commercial properties are not only limited to retail shops. Here are the different types of commercial properties that you can choose from:
- Office buildings
- Retail buildings
- Industrial buildings
Why invest in a commercial property?
Owning commercial spaces is rewarding. Here are a few reasons why you should consider investing in a commercial space:
1. Higher returns
The prices of commercial properties may be pricier than residential properties, but you can build your wealth faster by owning and renting out commercial spaces.
Higher demand for commercial spaces means a higher leasing rate. Residential properties only have 2 to 3% annual net returns, while commercial properties have 6%. You can check for available commercial real estate for lease central coast has, and for sure you will be in shock at the current leasing rates.
Aside from high rental rates, commercial spaces have longer lease terms, which starts for at least 3 years. This means that you have a more stable income unlike renting out residential properties.
2. Lower outgoings
The nice thing about owning commercial spaces is lower outgoings. This means that as a landlord, you do not have to spend on interior changes, it will be your tenant who will be paying for interior upgrades.
3. Improve the current value of the property
Prior to renting out your commercial space, you can increase its rental rate by improving the look of your property. Simply giving your property a new coat of paint means you can demand a higher leasing rate.
4. Tenants take care of your property
Because it is important for shops to look good to entice customers, your tenant will make sure your property is well taken care of. This limits your expenses for repairs when the previous tenant moves out because the property is already in great shape, ready to be occupied by a new tenant.
5. Takes lesser time to manage
Unlike residential rental properties, commercial properties are easier to manage. Business owners tend not to bother their landlords for small concerns such as leaky pipes.
If you are interested in investing in a commercial rental property, please visit https://henzells.com.au/commercial/commercial-property-for-sale.