Why choose Commercial Property Investment in Melbourne?

Melbourne is one of the destinations of choice for businesses who want to establish a presence in Australia. With this growing demand, there is a greater need for commercial properties to house these businesses. Most businesses prefer not to expend a large amount of funds to acquire their place of business during start-up or growth as they prefer to reinvest funds directly into their business. Business owners rely on commercial leases which creates a need for investors to acquire commercial properties and lease them out to businesses. Melbourne’s urban sprawl and growth of satellite cities around the CBD is creating a huge opportunity for commercial property investment.

Benefits of Investing Property in Commercial Property in Melbourne

Here are some of the benefits of investing in commercial property in Melbourne:

  1. If you are a serious and dedicated investor, commercial property in Melbourne is a better option compared to residential properties
  2. Commercial properties in Melbourne offer longer lease terms
  3. Commercial property investments yield around 7-9% p.a.
  4. Annual rent increases are written into commercial and retail leases for guaranteed growth;
  5. Choosing commercial properties wisely secures greater capital growth and
  6. Commercial tenants pay most of the day-to-day outgoings.

Key Points to Consider For Commercial Property Investment in Melbourne

  • Make sure you engage a financial, legal and tax advisor before making an investment to obtain sound advice
  • Perform extensive due diligence of the investment you are considering
  • The type of property, location and tenancy history all influence the value and yield of the property
  • Do not rely on old advice as the market and economy changes frequently
  • When investing with a property syndication company, ensure they hold all the relevant certifications and industry required regulatory compliance

Melbourne Property Investment Market Updates – Quick Overview

The commercial property market is not at its strongest point given recent economic conditions. However, demand for goods and services has increased due to favourable monetary policy and relief packages issued by the Australian government. Businesses are opening at a steady rate and they do need a place to operate from.  

Commercial Property Investment & Real Estate Syndication in Melbourne with Peak Equities

Investing in Melbourne commercial property requires you to have either the funds to purchase the property outright or an appetite to subscribe to a commercial property syndicate. The latter form of investment is an indirect method where you acquire units in a trust and receive a proportionate amount of rental return and capital growth. This helps investors with limited funds enter the commercial property investment market.

September 19, 2019

What is a Property Syndicate?

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