You may have noticed that record number of residential property investors are now starting to snap up affordable commercial properties?
Why? There are actually 7 great reasons:
- Residential yields are as low as 3% – whereas commercial yields are as 6%-11%. This means, you can potentially get 7 times more net passive income from commercial property!
In fact, you can potentially get as much as $1,800 per month positive cashflow from a $450,000 commercial property.
- You can secure properties with much longer leases – up to 10 years in some cases. This means you can truly get ‘set and forget’ cashflow when you know how to find them.
- It’s a ‘hidden property boom’! In some cities such as Sydney, commercial property is enjoying faster capital growth than residential! Especially now that growth is slowing down. This means, you can get capital growth and cashflow from commercial property.
- It’s surprisingly affordable to get started. You can buy a commercial property for as low as $150,000 – even in a capital city. This means you can ‘dip your bucket’ into the river of commercial cashflow surprisingly cheaply.
- The borrowing options have never been better. Right now, commercial property investors are getting loans of up to 80% of the purchase price – with interest rates at around 5%. Not only that – low-doc loan options such as ‘lease only’ are available in some circumstances.
- You have less “out of pocket” expenses! Unlike residential property, where you get slugged for rates, maintenance, etc. in commercial you hand the bill of that to the tenant, in many cases.
- Instead of needing up to 10 properties to retire from residential property, you can potentially retire with as a few as 3 properties. For example, a Melbourne investor is getting around $35,000 in net income from just 1 property. With a 5-year lease in place!
Want to learn more about commercial cashflow investing?
Now you can meet a commercial property investor who has created over $6,000 per week passive income from her portfolio.
She’ll share how to find the right sort of cashflow properties, with long leases in place, and secure tenants, that can give you a healthy passive income.