On The Money

Beginner’s Guide to Commercial Real Estate Investments in AU

Making an InvestmentThere are many good reasons to make a commercial investment in real estate in the country. One of these is because the Australian banking department is one of the safest in the world, according to recent reports from Standard and Poor. The nation’s stable political and civil sectors, low worldwide interest rates and residential growth also add to the attractiveness of making such investments.

It is also worth noting that, out of the nine 5-star banks around the globe, four of them are completely Australian. This indicates the country’s financial stability. High ratings from S&P mean very little to no odds of a bank failing, which then allows them to qualify more borrowers and provide investment capital.

The case between commercial and residential property investments

In Australia, according to the Sentinel Property Group, investors have two primary options: residential and commercial property investments. Some choose the former because of the belief that it is less risky, while others go with the latter because it delivers safer cash flow opportunities. While the final decision will still rest on you, it is crucial that you take into consideration the advantages commercial real estate property investments have over their residential counterpart.

Aside from greater returns on investment, commercial property investments also have longer leases, which mean longer guaranteed payouts for you, the investor. You also do not have to worry about other outgoings, including water, body and council rates. With a commercial investment, you also get to enjoy a smaller capital outlay.

Making the decision

Both residential and commercial property investments come with risks, greater for those who make blind decisions. So before you even spend any money, it is wise to work with an investment firm that will point you toward the right direction. These are investment experts who will use every available resource and tool to help you make the correct choice on where to place your hard-earned money.