KEY INVESTMENT POINTS: If you are familiar with Residential Property Investing, there are many key benefits in and office property, some of which are shown here:
1. Higher yields for Commercial (between 60% to 70%) than residential property.
2. Yearly rent increases for Commercial written into the lease.
3. Freehold Title
4. Longer Leases for Commercial.
5. Tenants pay outgoings with Commercial property.
6. Excellent tax benefits with over 50% of the purchase price available to be tax deductible.
8. No restrictions on Foreign investment with ComSave
9. Extremely rare off plan opportunity, seldom available..
10. Cash flow positive.
11. Better than money in the Bank, and Inflation hedge.
12. Financing available up to 60% TAP. (conditions apply)
13. 3 months rent deposit with Commercial property (1 month residential)
14. No Tenancy Tribunal in the event of non payment with Commercial.
15. 14 day eviction possible, only with Commercial property.
16. Genuine Inflation Hedge.
SPEAK TO CITYLIFE FOR ALL THE DIFFERENCES BETWEEN RESIDENTIAL AND COMMERCIAL.
GROWTH
In the last 5 years Small and Medium Enterprises (SME's) have grown by 28%.
But supply of new offices has been greatly restricted..
Further to this• 61% of all employing business in Australia have between 1-4 employees.*
WHY INVEST ?
High rental yields.
Long Leases.Rent guarantee. Rental Mnageement services after completion.
High rental occupancy.
Rental secured by Bank or personal guarantees.
Huge growth potential.
Perfect Inflation Hedge.
Low entry price.
Just 105 desures until after completion.
Strong growth area. Prices below established areas nearby in Southbank, Docklands and St Kilda Road.
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"South Melbourne is an outstanding and hugely popular office market with record low vacancy and only minimal new supply projected over the next 2-3 years"
(Colliers Rental Market Letter: 26 May 2010)
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Tenant leases for 3 years, with yearly increases.
Tenant leases secured by personal or bank guarantees.
Tenant leases with yearly rental increases written in.
Windfall profits opportunity due to shortage of supply.
Scarcity. There are no other new off plan freehold small offices available in any prime location to our knowledge in the whole Melbourne market.
Huge Stamp Duty Incentives. Huge Tax benefits.
Rent as an investment, or use yourself.
Once sold, there will be no more here
AND THE KICKER:
If in fact inflation does come rushing back, you could be sitting on a gold mine.
“"This raises perhaps the most troublesome concern of all.....the dreaded inflationery endgame suddenly looms as a very real possibility"
Stephen S. Roach. Faculty of Yale University; Non-Executive Chairman Morgan Stanley, Asia; and Author of "The Next Asia" March 19, 2011, SCMP
