Is Commercial Investing now more attractive than Residential property investing?

[Beano]

Per m2 the difference is even greater
Giving you an example in lower hutt wgton
A commercial building can be had for $850 m2 land and building whilst a residential you would need to pay about $3,800 m2.
Another example is in leasing
A residential one bedroom in Wellington typically leases for $400 m2 whilst a commercial typically $50 to $100 m2
Now people say residential will continue to grow faster than commercial

[donna]

People need somewhere to live but the same can not be said of commercial i.e. businesses don't need nor use commercial space like they used to. Smaller offices, co-working, remote working etc. Shopping online - that's changed the need for lots of retail space. Instead maybe the need for large format warehouses, but sometimes even that's not required either with product shipped from Asia etc direct to the door.

Tech is changing everything. Less professionals needed (Doctor, Lawyer, Accountant Apps). Restaurant food delivered to your door so no need to go out. Drink at home due to alcohol and driving laws. Residential is still the less risky option?

cheers,

Donna

[Nick G]

What do you mean by risk?

All of these trends you talk about.... yet our biggest city is in paralysis and can't organize a proper functioning train system between the middle of the business district and the airport.

[Bluecoat]

People need somewhere to live but the same can not be said of commercial i.e. businesses don't need nor use commercial space like they used to. Smaller offices, co-working, remote working etc. Shopping online - that's changed the need for lots of retail space. Instead maybe the need for large format warehouses, but sometimes even that's not required either with product shipped from Asia etc direct to the door.

Tech is changing everything. Less professionals needed (Doctor, Lawyer, Accountant Apps). Restaurant food delivered to your door so no need to go out. Drink at home due to alcohol and driving laws. Residential is still the less risky option?

cheers,

Donna

all options are safe to start with until they start meddling with it. current govn is one example

[Davo36]

These days when we manage to build a house, the prime minister shows up!

[JBM]

For me, Commercial much more attractive in the present market of very High residential values

#1 - both parties work on a business level .. we both want long-term leases and well-presented properties

#2- All outgoings paid (I even have my commercial tenant to re-paint and if ever leaves must re-paint whatever color I want)
I even checked my property recently and the tenant had fitted a new large heat pump in the retail area (was going to it but happy they took care of it)

#3-Good net yields ... So many residential look good to you take out all the costs and high ongoing Maintainance

----Still plently of rubbish commercial I wouldn't tounch but personal good grade commercial property everyday of the week over Res at current
values

Both very different in many levels

[donna]

These days when we manage to build a house, the prime minister shows up!

In an ideal world - housing would not allowed to be politicised.

One housing agenda and a long term plan and investment agreed upon (not just by Politicians). Just think where we'd be now if we could just get out of the way so progress could happen.

Who isn't over seeing Jacinda and Phil T at a housing PR campaign?

cheers,

Donna

[Smint]

I would go for commercial just because it is more stable. For example there is a good business for ale in Greece which is going to bring some good money. You can look on Tranio website some options. I know that some people prefer to buy bars, restaurants or hotels. So anything that is involving touristic sector because it brings money all the time.

[Bluecoat]

Why is this attractive investment ?

https://www.interest.co.nz/property/101458/commercial-properties-are-increasingly-popular-investors-chasing-rental-income

[Davo36]

Why is this attractive investment ?
https://www.interest.co.nz/property/...-rental-income

Only because absolutely everything is over priced (by historical norms).

And you get nothing by leaving your cash in the bank.