Investing is for everyone. It helps you create the future you want, for you and your family. But there are many ways to invest. Is commercial property investment right for you? Here’s some considerations and comparisons.
Commercial Property v Super Funds
Perhaps commercial property seems daunting – wouldn’t it just be easier to bank on your super? Well, there is some credence to that, and super is important, but many Australians mistakenly believe that super alone can set them up with the retirement they want. This is highly unlikely. The returns don’t stack up against many other forms of investment, especially commercial property. While there may be some fluctuation in the property market from time to time, a smart commercial property strategy is almost certain to deliver much better results than relying on super.
Commercial Property v Share Market
Shares are another common way in which to invest, but unless you put your hard-earned money into the hands of a stockbroker, this is a lot of hard work. Often, even with help, share investments require a lot of research that many of us simply don’t have the time for. Another downfall of the stock market is that, while it can be beneficial and even passive if you get your research right, when it comes down to it, there will always be an element of gambling involved. High risk, high reward is one thing, but if you choose to put your money in commercial property instead, you’re looking at a strategy that’s much more sustainable long-term.
Are you playing the long game?
If you’re looking to make a quick buck overnight, you might want to bet on crypto and ride the daily highs and lows. But if you’re looking to sustainably grow wealth over time, commercial property investment is more likely to be a better fit for you. Not only that, commercial property typically provides four times better returns than residential property, with the ability to produce cash flow and passive income opportunities.
Is the timing right?
The earlier you can start your commercial property investment journey, the better. One of the immediate barriers for commercial property is the upfront cost – you’ll likely need to fork out a high price with a bigger deposit than most residential properties. This is why we often see people turning to commercial property later in their careers, having built up enough capital, or expanding into commercial after investing successfully in other streams. Commercial property can be a great fit for those approaching retirement. We also see business owners buying their own premises, which has helped them kick off their property investment portfolios. The bottom line is commercial property isn’t prohibitive to anyone in particular; it all depends on your own circumstances and your goals.
The most important thing to do is get professional advice. Sit down with your accountant and financial advisor to get really clear on your financial position and wealth goals, then work closely with a commercial property advisor to put the right strategy in place. The top commercial property investors have an experienced, qualified team to rely on, and you should too. What are your next steps? Let’s have a conversation. Broadway Property works closely with investors at all levels, helping them navigate the journey and achieve success. Get in touch to discuss your needs. Ben Heritage Managing Director, Broadway Property Email me Ryan Stewart Director, Broadway Property Email me