Commercial Property Launches

Many residential property investors have started buying commercial properties for investment. Below are the reasons why:

1) High rental yield! For example, a 150sqft commercial shop can receive a rental of about $4000 per month
2) Longer tenancies. As businesses do not move about, you can easily get a tenant who stays with you for many years. Thus, much lesser time is wasted on transitions of tenants.
3) No renovation and furnishing costs. Tenants usually rent the commercial space as it is and renovate at their own cost, according to their business needs
4) No Seller’s Stamp Duty (SSD) and Additional Buyer’s Stamp Duty (ABSD). Can buy as many you want without paying any additional stamp duty
5) Loan up to 80%, irregardless of whether you have any existing mortgage loans

Some important considering factors when buying a commercial property will be:

1) Location (For example, human traffic is a very important considering factor for commercial shops)
2) Visibility (You need the crowd to see your shop, so a unit at the first floor or near the escalator is usually preferred)
3) Tenure (Tenure is certainly not as important a considering factor, but it reflects how long can this property generate income for you, as well as its future value upon you selling it)