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Some pros and cons of Commercial Property.

Home Forums Property Commercial Property Some pros and cons of Commercial Property.

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    R.D.
    Keymaster

    Pros:

    Longer lease periods that are typically 3-5 years with options for renewal.

    Tenant pays most of the outgoings such as general maintenance and even rates.

    Generally, higher yields compared to residential property.

    Set rent increases per year that can be incorporated into the lease.

    Cons:

    Longer vacancy periods.

    Higher deposit required (Typically at least 30%).

    Capital value tied to lease.

    More restrictions from banks such as regular valuations.

    Can be harder to resell.

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