Is commercial property on your investment list?

Whilst residential property remains popular with investors, commercial property can also make a great addition to a property portfolio.

Here’s a few reasons to consider diversifying in commercial property.

Strong income returns:
One of the benefits of owning commercial property is that leases are longer than residential property and usually three to five years. These longer leases provide more certainty of income and offer higher yields.

Lower ongoing costs
With residential tenancy, the landlord wears many ongoing costs including repairs and maintenance. Whereas, with commercial property it is typical for the tenant to shoulder the majority of these property costs leaving more rent in the landlord’s pocket.

Potential Tax Benefits
The great thing about a commercial investment property, is that you can claim tax deductions for most expenses incurred while it's operating, including:

• interest paid on a loan used to buy the commercial investment property
• travel costs incurred during visits to the commercial property
• advertising fees
• repair, maintenance, and management expenses
• depreciation of the building structure and the assets within it.

As with any investing that you do, it's always important to do your due diligence and research what is best for you financially.

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