Get off the 'Resi' Bandwagon

For Kiwis, ‘bricks & mortar’ have always been at the forefront of our investment strategy- a family home with an extensive backyard. However this type of investing isn’t always feasible. With Auckland’s booming housing market and positive net migration levels, investing in commercial and industrial property can be a viable avenue to keep the Kiwi property dream alive.

Obtain ‘outside the square’ rewards

The commercial and industrial property sector is largely misunderstood, perceived to be high risk and unobtainable. However, those who are willing to think outside the residential square and therefore separate themselves from the pack, could reap the otherwise ignored rewards. There are often fewer outgoings, there’s less hard work and there are potentially strong returns to be had.

Have fewer Outgoings

If you own a residential property, you are responsible for all costs such as insurance, rates, general maintenance & now, letting fees. However, in standard commercial and industrial leases, outgoings are usually the responsibility of the tenant. This means that tenants will not only maintain, but sometimes improve your property. They’ll also cover your property management expenses, making your investment hassle-free.

Achieve longer lease terms

Residential tenancies usually range between six months to one year. While on the other hand, commercial and industrial lease terms generally start from two years. This can help provide greater income security.  

Strong returns

Most people believe capital gains are solely associated with residential property. This is merely a myth as commercial and industrial property are not only higher yielding asset classes, they also can generate outstanding capital growth opportunities.

Blair James - Managing Director

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