Commercial Property: One Reason to Move to Australia

Commercial Property

Commercial PropertyCommercial property in Australia has become a good reason for anyone to relocate to the country, due to the sector’s positive performance.

That’s because the market has achieved its strongest growth in the third quarter of 2016 for more than two years. Investors poured $9 billion in commercial property investments between July and September with 30 percent of that amount coming from deals worth more than $200 million, the Sentinel Property Group cites.

If you’re looking to invest in the sector, it’s good to know that average capital flowing into the market amounts to $47 million — a sign that investors are ready to spend money.

Luring Investors

The Chinese are among the most prolific investors in Australia’s real estate. Investors from the Asian country have listed Australia as one of their target destinations for property. For the first eight months of 2016, Chinese investors splashed $23.5 billion into various markets aside from Australia, including the US, UK, Germany, and France.

That amount is set to exceed their total investments worth $25.7 billion for the entire period of 2015. It’s expected that outbound Chinese investments would increase by 37 percent in 2016 year over year, reaching $35 billion.

Asset Classes

Sydney and Melbourne attracted most of large-scale property transactions in Australia. Total property values in Sydney also rose 33 percent over the last 12 months, which makes owning real estate a lucrative investment.

Despite a weaker office sector, industrial and retail properties emerged as the well-performing sectors in the third quarter. Logistics properties cashed in $1.8 billion from several deals, while retail transactions reached more than 70 deals worth $2.2 billion in the three-month period.

Based on these figures, living in Australia appears to be an attractive option. Be sure to consult a local expert to help you on deciding where to put your money with the lowest possible investment risk.

Considering Investing in Commercial Real Estate? The Must Knows

Commercial Property Investment

Commercial Property InvestmentAny type of property investment, whether it is commercial, residential or agricultural, can be considered as a good investment. But if you are after a high return on investment and fast revenue, then an investment in commercial real estate is more financially rewarding. Residential properties also offer financial opportunities through rental or resale, but the revenue generated from these may come in slowly.

The commercial real estate might be the better choice as opposed to residential real estate. Commercial properties include retail, office, warehouses, industrial and apartment buildings. Before you take the plunge, however, it’s important that you understand the benefits that come with this type of investment.

1. Income potentialCommercial real estate investment yield high income in a shorter time. Its income potential is between 6 to 12 percent of the purchase price.

2. Loyal customers – Retail tenants that have found a good commercial location intend to maintain their profit performance by staying in the same location. This way, you are guaranteed of a loyal client that will bring profit to you.

3. Limited hours of operations – Commercial centres have fixed operating period, so you will have enough time to manage the business and enjoy your personal time.

4. Establish professional relationships – Commercial properties are usually owned and managed by corporations and they deal with business owners and corporations most of the time as well. Thus, it is good if you can establish a professional relationship with such companies.

5. Gain more objective price assessment – Since commercial tenants are business owners, you have a more objective assessment of how you are going to decide on rental fees and the succeeding increase based on their financial statement. Arrangements are easier to accomplish.

Of course, these are only among the advantages this kind of investment has to offer. Having all these in mind, it is easier to discern whether getting into a commercial real estate investment is something you can already handle and manage.