Using SMSF’s have been the method of choice in property investments, with the advent of the residential property boom. This has caused widespread talks of a property bubble, as most of SMSFs are invested in the residential sector, prompting experts to call for investment diversity. With the popularity of residential investments, is this a good time to consider investing in commercial property?
The residential sector can gain as much as 5% from rental income, around 4% or lower after expense. With commercial investments, the yields can go as much as 9% depending on the business type and demographics. One big advantage the commercial industry has is that you can use the investment as a tenant where in the residential sector that is not a possibility.
With these thoughts in mind, investors are urged to think of high yield investments. Whether your SMSF is in residential or commercial, the key is to ensure that the investment is carefully planned and in line with your goals.
Read more about this on the Property Observer website.
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