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.
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.
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