Like most of the newbies here I am referred by a good friend of mine when i was asking him abt IP's. I am looking for some guidance in commercial property investments How do we buy them/ where do we see the silent listings? how do we negotiate? Any recommended goo buyers agents for CIP all possible things that I need to educate myself in. All your help is is very much appreciated.
Hey! Welcome to the forums! Have you been investing in Residential IP before and now venturing out to CIP? The forums has talked about CIP a lot. Just do a quick search and you'll find most of questions has been asked already. Check out this thread about CIP that started yesterday. Commercial Property - newbie question
Thanks Jerry. I did buy couple of residential IP but I am not happy with the returns. I had been buying and selling vacant land blocks before.
Thanks Steven I am getting hardly 3-4% in Residential I heard that commercial get a good returns so want to make my hands dirty in commercial
Welcome! Don't necessarily dismiss residential returns. There are heaps of areas offering much better returns than the ones you mentioned.
Sounds like you're buying big houses closed to CBDs Nothing wrong with that but yeah, yields are not great. Lot of my clients (with a focus on cashflow) are picking stuff up returning 7% from day one. Those willing to put a few dollars in at the start and do a small reno for cashflow are getting 8-9%. Still not quite at commercial returns, but with far lower levels of risk. I reckon down the track I'll add commercial to my own portfolio but not until it would account for a small percentage of my total portfolio. I'll be interested to see what you discover about CIPs. I don't know a great deal at present.
Gday Maal, welcome aboard. Some like Steve McKnight advise a strategy of heading to commercial investment after you've built some capital with residential. CG can be better with residential, whereas commercial yield can be more useful towards the end of your journey. Might be worth taking a look at some of his books.