There are two main types of options for property investment which include;
Residential
Residential properties are for people to live in.
Houses (freestanding, semis, townhouses, duplexes etc.)
Apartments (single, blocks)
Commercial
Commercial properties are for people to do business in, provide goods and services from or for storing and handling goods.
Offices
Shops
Retail
Medical and consulting
Hotels and resorts
Development sites and land
Farming
Factories
Warehouses
Residential properties are generally a lot easier to purchase as they’re deemed to be a safer risk for lenders to loan money on.
This is because people are always looking for a place to call home, so it tends to be easier to have a secure tenant in place for residential investment properties.
Generally, a deposit and proof of loan serviceability are the basic requirements that need to be met in order to qualify for a residential property loan.
Commercial properties on the other hand can be a little harder to finance as they tend to be more of a risk for lenders.
While everyone needs a home to live in, not everyone is looking for a commercial property to rent.
The property price, its type of use as well as how the economy is doing on a business scale can all have an impact on the way a loan would be approved and financed.
Because of this, much larger deposits along with proof of serviceability is required in order to qualify for a commercial property loan.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
