Residential Or Commercial - Which is right for you?

[Walter]

Hi, Read what a well known professional has to say about making the choice...click here.

Kind Regards

[Brice]

I think to make investment in real estate in Australia best option is to buy a commercial property because there is a great profit margin in it . Moreover, Toady value of Australian Dollar has also better for investors to get the opportunities in commercial property . There is a great opportunity to have investment in these days because profit in near future will be double .

[myplace_11]

I would prefer in to invest in commercial properties you can gain more profit from it that on residential.

[mattinvestor]

Hmm. I've been investing in residential - and there are some profits to be made if you know what you're doing and where to invest. I preferred residential because it was easier to get into as a beginner.
From your suggestions, however, I may look into more commercial properties. What specific kinds of commercial properties have been profitable for you?

[Tan]

Residential is easier as you don't have to deal with "men who grunt and always think they are right" - especially just before they go broke.

However, if you have enough in the bank to get you through longer more expensive periods of vacancy, buy in a long term easy to rent spot, and are happy to deal with these guys (or get a good manager), commercial is the way to go definately.

Apologies in advance for the sexist comment.

[SwissKiwi]

"men who grunt and always think they are right"

Are you referring to commercial agents, tennants, finance guys....?

All of the above!?

[SwissKiwi]

Are there any decent industrial tennanted properties around in Tauranga currently?

Quite scarce in Auckland for a decent yield.

Are you buying?

[Tan]

Are you referring to commercial agents, tennants, finance guys....?
All of the above!?

Tenants. Commercial agents are our friends - especially now!

Are there any decent industrial tennanted properties around in Tauranga currently?
Quite scarce in Auckland for a decent yield.
Are you buying?

Tauranga has in general been having a hard time for the past 6 months especially, but seems to be picking up over the past couple of weeks thank goodness.

Always looking for decent property at a decent yield, but too much competition over the past few years, both Auckland & Tauranga. Not currently into anything that needs stuff done to bring it up to scratch. The tenants we have now are keeping us busy in the meantime......

[SwissKiwi]

I find that in the decent areas of Auckland - a vacant property is not being sold at much of a discount to one with a tenant - (industrial) what do you find in regards to this?

[Tan]

Been giving it a break lately & concentrating on what we have. But the problem seems to be that there is a large amount of people / trusts with money that are just buying anything. Haven't looked into foreigners impact on the market, but it's amazing the yields I have seen stuff selling for.

[drelly]

Given the number of empty commercial premises around at the moment, I'm glad I stayed in residential.

[Tan]

I'd definately say that if you go into commercial you need money in the bank or easy access to it to get you through vacancy periods, to fund tenant works if required etc.

The main thing I have found with commercial landlords is that a large number don't seem to claim all the operating expenses they are entitled to. It's lovely getting rates, insurance etc back, and makes it worth the effort to move from residential.

[SwissKiwi]

Given the number of empty commercial premises around at the moment, I'm glad I stayed in residential.

What kind of commercial and what locations are you referring to?

Industrial seems to be pretty solid to me - retail and office - not so much.

Cheers,
SK

[drelly]

What kind of commercial and what locations are you referring to?
Industrial seems to be pretty solid to me - retail and office - not so much.

I wouldn't really notice what is happening with industrial but retail and office locally has taken an absolute hammering.

[mattinvestor]

yeah i've noticed too that retail and office commercial properties have been more empty recently. Industrial commercial property could possibly be better to invest in, no?