5 Different Types of Commercial Property

 

Commercial property can be a great investment, and there are many different types that are worth considering. Commercial property is defined as any type of property that is bigger than one house on one lot, which means that there’s a lot of variety in what that entails.

1. Apartment buildings

Commercial property can sometimes be a misleading term because even though people live in apartment buildings they are still considered commercial. This can mean anything from small apartment blocks of 4 or 5 to multi-story complexes. These can be fantastic, low-upkeep income generator.

2. Offices and warehouses

The big advantage of office and warehouse property is that tenants pay triple net leases, which means that they pay rent, all maintenance and repairs, property insurance, and real estate taxes. Tenants will also pay the land tax in all states except Queensland.

3. Retail centers

Shopping centers and malls are also leased on a triple net basis and with longer terms. These are great investments over the long term because your profits don’t go down as taxes go up. Your profits just go up as rents go up, so your profits will increase over time.

4. Hotels and resorts

This may not be the best investment for passive income Owning a hotel or resort is the same as owning a business. It is so important in this area is to do your research and know what you’re getting into so that you can protect yourself. One way around this though if you do still want to invest in a hotel or resort is to lease it to a company that will handle the operations. That way you can reap the rewards without the headache.

5. Land development

Another form of investment that can burn you if you don’t know what you’re doing. Experts suggest starting small with property development because it can be an exciting and rewarding investment strategy, allowing you to be more hands-on.

If you need help deciding what kind of commercial property makes sense for your financial goals, the team here at Global Capital can help! We specialise in property and construction finance and can provide the expertise you need to make the best possible choice.

Know more and contact us for Commercial Property Loan, Email us on info@globalcapital.com.au or visit our website https://www.globalcapital.com.au/property-finance/commercial-loans/