Commercial and Industrial Properties: Investment Pros and Cons

The Australian housing market provides opportunities for homebuyers and investors. Australia also houses a robust market for commercial and industrial properties. Both are less heard of unless you hang out in real estate investment circles. One reason is that commercial and industrial real estate requires a significant capital infusion. At Mortgage House, we help our clients fund these projects and others. Let’s explore the pros and cons of these ventures.

Pros

Entrepreneurs dive into the commercial and industrial real estate market because the payoff is significant. As long as the property remains occupied, stable income exists. These properties are less volatile. Commercial and industrial tenants don’t relocate on a whim. It takes time.

These real estate properties allow investors to enter related markets such as retail and manufacturing. Property is a hedge against inflation and offers attractive tax benefits. 

Run-down properties have the potential to become valuable through upgrades. Never underestimate the power of a new coat of paint. 

Cons

There is always the other side of the coin to consider. Commercial and industrial properties are powerful income generators. Once you sell, you must wait several months to see liquidity. Pricing information is difficult to obtain. This means that you must invest several research hours. To enter this market, you should expect a high barrier of entry.

These properties require ongoing management because they are so large. There are people working inside them and machines operating throughout the day. So, it’s a different type of venture. 

Commercial and Industrial Properties Conclusion

To find out what financing products we offer to commercial and industrial properties, contact our Mortgage House team of lending experts. A commercial loan might be appropriate. Every property must be assessed on a case-by-case basis. We take into consideration your current financial situation and other factors, too. Nonetheless, you can rest assured that our forward-thinking mindset can find innovative solutions.