Commercial Property Investments

Commercial property investment can be a good way to make considerable money. The following are some helpful tips and advice.

Commercial properties
Commercial property refers to buildings and land that is bought with the intention to generate a profit either from capital gain or rental income. Commercial properties are usually divided into four main categories - retail, office, industrial and family properties. This includes offices, industrial property, hotels, shopping centres, retail stores, farms, housing and apartment buildings and warehouses.

Tips

• Before investing in a commercial property it is advisable to consult with a financial advisor. This will give you a better idea of the financial commitment involved and will help you decide what you can afford.
• It is best to view a commercial property as a long term investment. Be prepared to invest for up to 10 years and make sure that your cashflow can comfortably deal with this.
• Make the most of positive or negative gearing. With negative gearing the loss can be offset against other income you earn. With positive gearing you will earn extra income but you will also have to pay tax on this.
• It may also be worth using the equity in any other properties you may own to help finance a commercial property.
• Choosing the right loan to buy a commercial property loan is very important. Make sure you get a loan that best suits your needs and cashflow requirements. Factors to consider are fixed or variable interest rates and repayment schedule and options.