Lenders are much stricter on borrowing criteria for commercial properties and if the property is not let at the time you purchase it, you may have to pay GST.
The commercial property market can be less predictable than the residential market (where historically properties tend to double in value every 7 to 10 years). There are also different kinds of commercial property to consider such as commercial, industrial and retail. With proper research, you may find that you are more comfortable making the decision about which type of property to invest in.
Although residential leases are shorter than commercial ones, residential properties are generally easier to let, meaning you will have less time when the property is vacant. It can take months to find a new commercial tenant.
Whether you choose residential or commercial property, the more you know about your market, the safer your investment will be. Velocity Financial Services can help you with expert knowledge, and help you work out how much you can afford to borrow and which loan best suits you.
For more information, please get in touch.
