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Commercial v residential investments
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How to win in today s commercial property market - Smart Property Investment
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Why commercial is the new residential
By Scott O Neill
26 February 2021
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1 minute read
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Gone are the golden days where you could purchase residential properties with yields of 6, 7 or 8 per cent or build a self-sustaining property portfolio based solely on residential.
You simply cannot find these yields anymore. For a high-net-worth individual whose main objective is to get the strongest returns on their investment, adding a commercial property to their portfolio or shifting their portfolio purely to commercial is the only way to go.
Highest cash-on-cash returns seen in almost a decade
It is a fact that commercial property currently offers the highest cash flow you will find in Australian real estate. At Rethink Investing, we are currently securing 6-9 per cent net yields on the high-quality commercial properties we’re buying for our clients. However, when you look at the returns on your initial cash investment, the numbers are even better. We’re talking 25 pe