Aussie investors attracted to high rental yields, long-term guarantees of commercial property
About four-fifths (78 per cent) of prospective buyers consider commercial property a better venture than other investments, including keeping money in the bank or investing in shares, according to a realcommercial.com.au poll. Self-managed super funds and property syndicates are making this investment vehicle more accessible than ever before.
The realcommercial.com.au poll surveyed 2,142 respondents, measuring the attitudes and perceptions of those keen to enter commercial property market to buy or to lease. While capital growth is often seen as the key goal for property investors, 25 per cent of those polled believe that when it comes to rental yield, commercial property is especially attractive. Further to this, 21 per cent of those surveyed stated they find the sector an appealing option because commercial property investment guarantees a long-term lease.
A growing number of prospective buyers are turning to commercial property as a way of investing in their future - with more than one in two of those surveyed (55 per cent) considering buying a commercial property as an investment to form part of their self-managed super fund.
The realcommercial.com.au survey also revealed 41 per cent of prospective buyers have thought about forming a syndicate or buying with family to purchase commercial properties.
Property investment expert Monique Sasson Wakelin said: "With Australia's overall economic climate looking relatively robust, investors should be looking at a well diversified approach to property investment, including high quality commercial property where appropriate."
The main obstacle has been and remains the need to secure the initial finance, with many prospective buyers (36 per cent) citing this as the main impediment to investing in commercial property. "To overcome the budget challenge many Australians are exploring different strategies to get a foot on the commercial property ladder, including syndication," she said.
Monique added: "Looking beyond traditional super and shares is part of a well considered property investment strategy. Investors are including commercial property as a way of diversifying their property portfolio with the prospect of a reliable long-term rent and tenancy being attractive propositions."
In a recent commercial property insights video interview, independent financial expert Nerida Cole, Executive Director of Dixon Advisory's Financial Advisory commented: "The tax concessions are very powerful in superannuation and that's why looking at buying a commercial property in your self-managed super fund can be so attractive."
"There are no limits to the amount of properties you can own in your super fund, but it comes down to the diversification of your investment and how you manage that," she concluded.
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