For anyone with some capital they'd like to invest, there are a wide range of possible vessels available, ranging from stocks and bonds to more substantial purchases like property. Recently, we've begun to see an increase in investment in the latter. To be specific, it's commercial property that's seeing the most activity in 2017 on the Gold Coast.
What are the advantages of investing in, say, an office building or industrial facility rather than simply buying a house? This is a compelling question, and it's one that every investor today is thinking carefully about before committing to any big purchases.
What follows is a breakdown of the latest sales activity in the Gold Coast region and an analysis of what makes commercial property investment particularly worthwhile.
Buying commercial property on the Gold Coast is a hot topic these days, as many businesses have shown interest in setting up shop in a fast-growing region of Australia. According to CoreLogic, sales have steadily increased in 2017, as the first three months of the year saw a total of 59 purchases for a combined value of $73.9 million.
A number of different types of real estate have seen significant growth this year – of the sales made between January and March, $13.2 million was for commercial property, $10.9 million was for commercial strata, $27.5 million was for retail and $14.9 million was for retail strata. As the population grows on the Gold Coast, companies are quickly realising there's an opportunity there to seize more new business.
Many of the sales in early 2017 came all in one fell swoop. A series of six commercial lots, all located near each other on Surfers Paradise Boulevard, sold recently for a total of over $33 million. Megadeals like this have a way of driving interest in future investment opportunities, which means we may see more fireworks before the year is done.
When you're investing in property, you have all sorts of options to choose from – so what makes commercial space specifically the best value?
One answer is it's easier to buy quickly. Commercial properties tend to require proportionately smaller deposits at the point of sale, which means you can buy real estate sooner, then immediately turn around and begin making income through renting it.
Once you do find a tenant for your building, it's likely to be for the long haul, too. As you get into office leasing on the Gold Coast, you'll discover that leases tend to be longer than with residential properties, and they offer a higher return on investment as well. A commercial building might be expensive, but it can yield more income in the long run.
If you've decided that it's time to make your move and find commercial property for sale in Surfers Paradise, we are happy to help. Ray White Surfers Paradise is part of Australasia's largest real estate group – one in every 10 properties sold in the region goes through us first.
We have a unique search tool that makes it easy to conduct a search and find the perfect property you want. Just name the size, type and location of place you're looking for, and we'll take care of the rest. Our goal is to connect real estate sellers with exactly the right buyers. Connect with us today, and we'll make that happen for you.