Blog

January 08, 2020

A Guide to Property Investing in 2020

If you are considering property investment, but you don’t know where to start, this guide should help you get started. In Australia, the real estate market is worth over 6 trillion dollars. That exceeds Australia's combined superannuation funds by three times. Why? It’s easy to understand and it’s tangible. There will always be property demand, which means you will always have a great chance of growing your investment.

As you look for commercial property to invest in, keep the following in mind.

  •  Am I looking for office, industrial or retail property?
  • What’s your budget?
  • What fits your needs?
  • What kind of income can you expect?
  • What risks do you face?

 Once you have answered these questions, there are considerations to keep in mind as you look for properties.

 Market Monitoring

  • Property Values
  • Days On Market
  • Rental Yields
  • Vacancy Rates

While residential property investors look for rapidly growing populations, commercial property is a bit different. A diverse, vibrant economy in the area is important, but so is the local infrastructure. Additionally, areas with a low supply of commercial properties to rent are likely to see higher demand from renters or buyers down the line. When investing in commercial properties, you can’t just look at the area as it is now. It’s important to consider the potential growth for the area in the next three years and beyond.

 

Commercial property investment is a positive choice because the return on investment is generally higher as compared to residential properties. Commercial renters typically lease for longer periods because the property is an investment for them as well. This, of course, means that you have fewer expenses ongoing, particularly in the longterm management of the property. The price of commercial property don’t fluctuate like other investment properties, but rental prices influence the valuation of your property and you can work those increases into your lease agreements.

 

If you want to find out more, get in touch with the team at McGees today.