If you are looking to grow your wealth buying property is a great way to start. Whether you decide to purchase a residential or commercial property, both are solid options that can provide consistent returns for your money. Investing in each type of property has its own unique benefits and considerations that you should keep in mind when deciding where to invest your money.
Residential property is any property that is designed to be lived so it can include houses, apartments, holiday homes, and townhouses. It is the most straightforward form of property investment and perhaps the best to start out with if you do not have prior property investment experience. Residential property will provide consistent income through stable rent payments with potential for fast market growth. The stable rental yields are great for helping you make loan repayments and increase your overall cash flow.
The commercial property encompasses any form of property that can be used for business operations such as offices, factories and retail stores. The benefit of commercial property is that you can expect a much higher rental return compared to other property types and you can also expect much longer leases than residential property. The difficulty for commercial property is replacing or adding new tenants. The other benefit is more of the responsibility falls on a tenant’s shoulders in commercial property, building rates such as council fees and water bills are usually paid by tenants.
Purchasing land can definitely bring you strong returns on investment but needs to be done carefully as it is probably the riskiest investment option. There are a number of variables that pose a great risk when you purchase lands such as zoning, access to utilities and environmental issues. The main disadvantage of buying land is that there is no rental income unless you purchase a farm, so expect to wait a while before seeing your money grow from vacant land.
Buying property is a wonderful way to grow your money and increase your overall cash flow.
If you would like to learn more about financing your property investment, please get in touch with us today.