I went to a property investor association meeting last night about commercial property and the benefits as well as the downsides of it all.
I've hence spent around 2 hours on trademe looking for all sorts of commercial property around the 300k-1million purchase price mark and what value you can get for money.
Looks like you can get 9-11% yield in smaller towns, hard to re-let, short lease properties all the way down to 5-6% yield stronger tenants, stronger lease, easier to re-let properties.
I then looked at what you can buy in blocks of units/flats for similar prices and you can buy anywhere from 2x2 bedroom units to 6x1 bedroom unit blocks with yields around the 6-7% mark in large-ish towns/cities around NZ.
Question is... Why take the risk of commercial property with potentially vacant buildings, complexities with lending, etc when I could go out and buy a good value unit block I can add value to in a good location for similar yields with arguably better upside for capital growth longer term?
I've hence spent around 2 hours on trademe looking for all sorts of commercial property around the 300k-1million purchase price mark and what value you can get for money.
Looks like you can get 9-11% yield in smaller towns, hard to re-let, short lease properties all the way down to 5-6% yield stronger tenants, stronger lease, easier to re-let properties.
I then looked at what you can buy in blocks of units/flats for similar prices and you can buy anywhere from 2x2 bedroom units to 6x1 bedroom unit blocks with yields around the 6-7% mark in large-ish towns/cities around NZ.
Question is... Why take the risk of commercial property with potentially vacant buildings, complexities with lending, etc when I could go out and buy a good value unit block I can add value to in a good location for similar yields with arguably better upside for capital growth longer term?
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