I was chatting to my uncle at the weekend – a grizzled old farmer.
He mentioned, he may take a big hit on his cash flow from shares, if the Federal Labour parties new dividend imputation policy gets up.
(That’s assuming Labour get in. If the election was held today they probably would. The election has to be held by May 18th, 2019)
Now, he’s traditionally invested in residential property and shares to fund his retirement income – like many other Australians.
The challenge is, Labour are also going after negative gearing so he may take a bit of a hit on his residential portfolio as well.
So, I suggested to him, to take a look at the commercial property, which he’s going to do.
There’s a couple of reasons for that.
One is certain types of commercial property are absolutely booming.
For example, warehouse space in certain areas is in hot demand – perhaps due to rise in online shopping etc – so we’re seeing strong price growth there.
And, also office space in Melbourne and Sydney is also super-hot.
In fact, a recent report by respected research group BIS Oxford Economics says:
“Commercial property – led by Sydney offices – will deliver the greatest profit prospects to investors over the next five years”
However, the big ‘draw card’ to my uncle is he can find a solid commercial property with a 7-8% yield, with a top-grade tenant, to help super-charge his cash flow.
This will help plug any gaps left by potential Labour policy on his share or residential commercial property portfolio.
If you are keen to look into commercial property, then join Helen Tarrant at her free webinar.
You’ll see how you can potentially rake in up to $10,000 pa of positive cashflow …with a humble $240k property.