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10:11AM Tuesday 02 December, 2008
'Blogs Central
Blog Central: Consumer Watch Your home is your biggest asset so it pays to heed good advice when it comes to property matters. Each week the Real Estate Institute of Queensland provides a consumer watch to keep you up to date with all the latest industry trends that could affect you.

Thinking of investing in commercial property?

August 22 | the REIQ

Interest in commercial property investment is growing due to vacancy rates heading towards historic lows and rents increasing.

But investment opportunities in the commercial property market can be limited by the size of your bank balance or your capacity for debt.

The commercial/retail sector may, in some instances, have a minimum dollar entry level of about $1 million but it is usually $2 million to $3 million. Strata opportunities are also often limited.

The industrial sector, however, has investment opportunity entry levels that can be similar to residential property. It has significant opportunity in the small strata end, with prices from $100,000 to $300,000.

So if you have the financial wherewithal to step into the commercial market, what opportunities are available?

Short-term investment opportunities depend on the security of the income stream, the location of the property and the capacity for future letting.

Any commercial property located close to the GPO or major airport in any capital city is highly sought-after, provides good rental income and strong capital growth.

Commercial property investment that may provide a higher return, but at a greater risk, is in outer areas where future infrastructure may change the capability of the locale in the future.

When buying, selling, renting or investing in residential and commercial real estate, look for the 2007 REIQ accredited agency logo as a sign of an agency dedicated to the highest standards of business practice.

It is important to be aware that not all real estate agents are REIQ-accredited agencies. The accredited agency logo serves as a visual safeguard to help you make informed and confident choices.

For a list of REIQ-accredited residential and commercial agencies in your local area visit www.reiq.com.au or phone (07) 3249 7347.

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