The King of Cashflow
Commercial property, is the king of cashflow positive property investment.
For me, without a doubt it sits right on the top.
For most, it’s the scary beast in the property investment cupboard that they know nothing about.
It’s like commercial agents are speaking another language, cap rates, triple net leases, gross yield, net yield.
This is where the opportunity begins. Most people are focusing on bricks and mortar residential assets, leaving space and opportunity in the commercial world.
Though this is changing at a fast rate as people are cottoning onto the high rental yields and long long leases offered by this asset class.
Let’s look at some example numbers:
Location: South East QLD
Lease: 5 years
Purchase price: $750,000
Loan $525,000 (70% LVR)
Interest rate: 3.5%
Net Yield: 7.2%
Passive income after all loan repayments: $27,750/yr or $533/wk clear in your pocket.
Why I like commercial property:
What’s not to like about it?
Well, with everything there is risk.
If you are interested in supercharging your passive income,
Book a chat with me on our website!