Finance & Fury Podcast

Welcome to Finance and Fury  In today’s episode we’re talking about property - Commercial vs Residential. It’s often a question people ask when they’re looking to start investing in property and considering which is the best type to get in to. What is best to buy? Residential or commercial? What do you want to achieve? They aren’t the same beast – Whilst they’re both ‘property’ they aren’t really the same thing and behave quite differently   Residential Property Homes or apartments Rent to individuals   Commercial property Three different property types Office Retail Industrial Rent to businesses   Commercial property to residential Pros Costs – Commercial can have lower costs Upfront – Technically cheaper per square meter than residential Ongoing – Tenants cop some of the costs (maintenance, etc.) Higher Rental Yields 8-12% on yields Residential has about 3-4% on yield Long leases Leases for 3-5 years are more common. Can go to 10 years. Provides certainty Cons Lower capital growth Su