From January to March 2015, the commercial property industry in Australia gained $4 billion from Chinese investments. This is a 10% growth in Chinese funds from 2014 when the industry only earned a total of $10.5 billion. In fact, Chinese financiers bought 36 out of 116 commercial properties in the country’s key cities as of April 2015.
This is proof of the industry’s global reach, which implies how lucrative the investment business is. Resolve your investment and management issues now to thrive in this sector.
Demand is the key factor that boosts this industry. Economic trends move demand. It is easy to connect that when a country is financially stable, the need for products and services go up as well. With this, there is a need for more jobs, which means the need for workplace areas as well.
There are business risks you have to cope with to succeed in this industry. For instance, commercial property management companies in Brisbane say long lease agreements may result in no tenancy for a long time. During these trying times, you must shoulder the maintenance costs. A bigger property with fewer renters means more costs for you to shoulder.
In terms of actual investing, you should go for a Self-Managed Super Fund (SMSF) when you have at least four business partners. You have tax reliefs with SMSF. Banks will actually lend you an average of 70% of the property price, though it will still depend on your expected return on investment (ROI).
Your property manager must be an expert in the field and backed up by the best team possible. This person will be in charge of rental collection, maintenance deals and occupant needs supervision. This is easy work if your manager shows genuine concern for your property.
Partner with a property manager who has an extensive list of potential clients and is always updated on rental trends.
When you consider all these matters, ROI increases. Enjoy your smart investment with great management ideals.