For many Investors, one of the largest asset classes, the commercial property investment class, remains untapped and unknown.Prior to the emergence of real estate crowdfunding, commercial real estate investments were only available to a select group of investors. However now, real estate crowdfunding has removed the barriers to entry and has made it possible for a broader investor base to gain access to this asset class.
Commercial real estate is any property that is designed to produce income; including apartment complexes, office buildings, shopping malls and office buildings.Commercial real estate sets itself apart from other investments; making commercial property one of the most appealing of all asset classes to invest in.
While other investments like the stock market can be volatile, commercial real estate tends to be more stable, and offers less movement in price. Additionally, returns are generated from income and price appreciation, so tends to be more stable during time of market volatility than other potential investments.
The average rental return for residential properties across Australia’s capital cities is 3.6% (CoreLogic RP). In contrast, commercial properties can yield anywhere between 8% and 12%.
Diversification is important in any investment portfolio, as it assists with spreading the risk across multiple investments.
The entry price for commercial properties offered on CrowdfundUP are lower priced compared to investing in a single residential, residential property due to our investments being divided amongst multiple investors. Investing your preferred amount in a commercial property investment may be a great way to get into the market sooner than saving a higher amount to invest in residential property.
The information in this article is general in nature. Any advice it contains is general advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person.
The article content is not intended to be a substitute for professional advice and readers are urged to seek their own appropriate advice before making decisions.
Any reference to a particular investment is not a recommendation to buy, sell or hold the investment.