Advantages of Purchasing Commercial Property

Posted on Wednesday, May 25 2011

Commercial Property Know How


If you want to move into property investing, why not consider commercial real estate? There are many benefits in including commercial properties in your property portfolio. Although finding commercial property for sale can be more challenging than locating residential property listings, you may reap the rewards of commercial property investment in many ways. This article will give you four reasons to consider a commercial real estate investment. At the end of the article we will tell you where to go for help with your commercial real estate properties.

One of the best reasons for an investor to consider this type of investment is the long term cash flow. NZ commercial property is the perfect source of income for much longer periods of time than residential properties might provide. Commercial real estate leases are usually based on net return when the operating expenses (OPEX) are paid by the tenant. Traditionally the leases are longer and with tenants who are much less likely to walk out or default on a lease. Even if a commercial tenant gets liquidated, the liquidator may continue to make payments so that the lease doesn’t get forfeited.

Commercial Property NZ

Commercial property management is often much easier than managing residential properties as well. The tenants may be responsible for much of the corporate property management and upkeep of the property. Corporate real estate management can also be easier because a corporate occupier tends to be easier on the property. They understand that if commercial property development goes down in the area, they will have a tough time attracting new clients to their business. Commercial property management software can make your task even easier.

Commercial real estate investments don’t have to rely on capitalized value to make a good return. This means that a commercial real estate investor can still make a good return on his properties, no matter what the market may do. Real estate asset management for commercial properties tends to be easier for this reason. However, it is important to note that apartment building finance may be more vulnerable to market trends. This should be a factor in your commercial real estate strategy.

Financing properties for commercial use is very different than residential property financing. Commercial property lenders have different criteria they use, including a debt coverage ratio, due diligence period and pre-approved property finance. While the process is different, there are some distinct advantages to working with commercial property finance brokers. For one thing, the rules for borrowing down payments tend to be much looser than they are with residential real estate loans. This is good news when you consider that down payments tend to be much larger on commercial property in Auckland and Wellington.

Whether you are looking for commercial property in Dunedin, Christchurch or Queenstown, a property finder buyers agent specializing in commercial property can help. This professional can help you form an effective corporate property strategy and work with a property brokerage to get you the best property at the best price. This professional will walk you through the entire process so your commercial real estate purchase goes as smoothly as possible. Contact for more information about commercial real estate investments.

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