Have you considered investing in commercial property? There is a growing interest in investing in commercial property.
  • Residential & Commercial Investment

The difference between investing in commercial vs residential real estate

There are numerous differences, including the following:

  • Commercial properties tend to yield a higher return than residential properties between 5% and 9%, where as residential yields are about 2%- 3% net
  • Leases for commercial properties tend to be for longer periods, often 3 to 5 years as opposed to the 12-month lease which is common in residential properties
  • Tenants in commercial properties usually pay all the outgoings such as rates, taxes and insurance, while with residential property the landlord pays these
  • Residential property investment is usually more about capital growth than income
  • There are tax advantages associated with both property investments types depending on the investor’s circumstances
  • Commercial property dealings are between business people and so landlords are not beholden to the Residential Tenancy Act which can be quite onerous
  • Less leverage available for commercial property typically under 70% loan to value
  • Residential properties usually have shorter vacancy periods
  • Stability of income - commercial property incomes are generally high and more secure
  • Commercial property can be transferred into SMSF accounts whereas residential property cannot be transferred from related parties usually 
  • Commercial property is harder to price - compared to residential property there is little pricing information available for investors
  • Commercial leases are more complex - and usually require legal assistance
  • Professional help especially required for commercial property, for example tax agents, solicitors and real estate managers, buyers agent and possibly financial advice too

SFR Property Professionals is here to help. Take the hassle out of what type of property investment suits you, and as part of a multidisciplinary financial advice practice, we can provide all the services and advice needed under the SFR Advisory Group.
 

If you would like to know more please speak to one of our friendly team on 9220 5200 or use our Enquiry Form and we can call you.

Testimonials

  • It was a pleasure dealing with Dean Sampson for the sale of our property. He was very informative, courteous and professional throughout the process and was always available to provide help and advice on related matters. We will definitely use his services for the sale of our next property!
    Sarita
    (Project Systems Co-Ordinator – WA)
  • Thank you Dean & Garth for your assistance with the sale of my property. The transition went smoothly, and I really appreciate your efforts in achieving such an excellent sale price, and such minimal disruption with viewings. This experience has been awesome, and I’ve recommended you to friends who are selling.
    Paul
    (Technical Sales Specialist – WA)
  • We have been clients of SFR Advisory Group since 2002, under the very good care of our SFR advisor. During this time we have experienced both good & bad times with the economy which has had a significant influence on the stock market & our portfolio. Our SFR advisor’s advice & guidance during the last 12 years which covered the GFC was invaluable. We have always found his recommendations for the purchase & sale of various investments to be both careful & fruitful. He has kept our portfolio healthy & is always available to speak with.
    We also had occasion to deal with their real estate arm (SFR Property Professionals) when arranging the sale of our mother’s home. This was also handled in the same efficient & ethical manner.
    I have no hesitation in recommending SFR Advisory as a solid & careful organisation who we have found to be very ethical & trustworthy. We have no trouble sleeping at night knowing our funds are in safe hands.
    Peter and Maree
    (Volunteer Workers – WA)
  • SFR Property Professionals have been managing my Perth apartment since 2012. Our experience with them has been positive. The team is very professional and efficient and any enquiries and problems have been promptly answered and addressed by their representatives. SFR Property Professionals have also kept me updated and informed about the current trends in the property market in Perth. I am pleased with their services and highly recommend them.

    Nicholas
    (Property Investor – Kuala Lumpur)
  • We have been clients of SFR Advisory since 2009 and our only regret with this association is that it didn’t begin a lot earlier.
    Our SFR advisor was instrumental in straightening out the disastrous mess caused by our previous advisors. His work was tireless, meticulous and methodical in his endeavour to realign our portfolio. In the ensuing years his results speak for themselves, above average service and results.
    We have no hesitation in recommending our SFR advisor to anyone who is fortunate enough to have him pass their way.
    Peter & Trish
    (Real Estate Agent – WA)
  • SFR Property Professionals have been managing my Perth apartment since 2012. Our experience with them has been positive. The team is very professional and efficient and any enquiries and problems have been promptly answered and addressed by their representatives.
    SFR Property Professionals have also kept me updated and informed about the current trends in the property market in Perth.
    I am pleased with their services and highly recommend them.
    Nicholas Choong
  • Thank you Dean & Garth for your assistance with the sale of my property. The transition went smoothly, and I really appreciate your efforts in achieving such an excellent sale price, and such minimal disruption with viewings. This experience has been awesome, and I've recommend you to friends who are selling
    Padgett Rowell
    Technical Sales Specialist – WA
  • I have used SFR’s commercial tenant advocacy services for my own business and recommend other businesses should do the same. Landlord s have people to help them and so should commercial tenants. Garth has a wealth of knowledge and is always available to provide the right advice.
    Mariella Caroè
  • We thoroughly recommend SFR PROPERTY PROFESSIONALS, they were very efficient,knowledgeable and friendly ,l had no trouble talking to them about selling the property, which they had sold in a very short time with no problems happening. lf l selling again l would highly recommend them .
    Thanks For All Your Help Well Done
    ldphillips27