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.
What is commercial property?
Commercial real estate is any property that is designed to produce income; including apartment complexes, office buildings, shopping malls and office buildings.
Why Commercial Property an important part of a property portfolio
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. Investing in commercial real estate is adding a new dimension to your investment portfolio that will not be affected by the same market influences as residential property may be.
Smaller investment amounts
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.
"Any advice provided on this post is general in nature. Readers are urged to seek their own professional advice before making decisions."