Investing in Business space (Clean and light industries)

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mort
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Posts: 34
Joined: Sat Jan 16, 2010 10:18 pm

Investing in Business space (Clean and light industries)

Post by mort »

Hi Dennis,

Will be attending your property investment seminar later this month.

I noticed that most of the discussions in this forum is on residential property investment.

I am interested in investing in business space as the rental yield is higher; 5% compare to 3 to 4% for residential property.

May I know does the capital return of business property mirror the general trend of residential property?

Do we look out for similar attributes like location (e.g. assess to MRT, near upcoming areas like Jurong and Paya Lebar) when choosing what to invest in? Or other factors like the type of industry it is targeting?

Any difference in the financing of business property?

Or should we just invest in REITs?

Thanks.
Dennis Ng
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Location: Singapore
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Re: Investing in Business space (Clean and light industries)

Post by Dennis Ng »

mort wrote:Hi Dennis,

Will be attending your property investment seminar later this month.

I noticed that most of the discussions in this forum is on residential property investment.

I am interested in investing in business space as the rental yield is higher; 5% compare to 3 to 4% for residential property.

May I know does the capital return of business property mirror the general trend of residential property?

Do we look out for similar attributes like location (e.g. assess to MRT, near upcoming areas like Jurong and Paya Lebar) when choosing what to invest in? Or other factors like the type of industry it is targeting?

Any difference in the financing of business property?

Or should we just invest in REITs?

Thanks.
Hi mort,
rental on commercial properties are higher, but do you know:

1. max financing is about 70% (now same as residential though).
2. interest rate is higher than residential properties.

3. There are many different type of commercial properties, it is NOT so simple as just looking at the rental yield, if above 5%, can buy. Sometimes, commercial properties can be left vacant for a long time if the current tenant closed business.

In investing is just like War, learn from Sun Tze, he said :"know yourself, know your enemy, in order not to die in battle 知己知彼,百战不饴. People distort and misquote him as : 知己知彼, 百战百胜.

So my question to you is do you know more than your enemy (ie. the average Commercial Property investor out there?) If the answer is no, guess what is your chance of winning?

Many of my sifus have made millions and millions of dollars from residential properties alone, without investing into commercial properties.

My Seminar will also ONLY teach how to invest into residential properties, becos commercial properties there are many types and sub-markets eg. HDB shop house, conservation shop house, retail shops, shopping centre retail shops, office, suburban office, Grade A office properties, industrial properties, light industrial, JTC factory, etc, etc....

Anyone in the market claim they teach you how to invest into Commercial Properties in 3 days, I think NOT quite possible to learn in 3 days, since there are TOO MANY things to consider in Commercial Properties.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
meowweom
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Posts: 26
Joined: Tue Oct 19, 2010 2:33 pm

Post by meowweom »

hi

Tenure in commercial ppty is an important factor to note as it affect ur loan installment and ur buying \ selling price.

JTC \ HDB Industrial ppty - 99 \ 60 \ 45 \ 30yrs Tenure, higher yield.
HDB shophse \ shop lot - 99yrs Tenure, higher yield than residential ppty.
Commercial bldg \ Shophse - FH \ 999 \ 99yrs Tenure, lower yield but higher yield than residential ppty.

Season Commercial Ppty Investor mostly prefer to buy FH ppty, and those with frontage, esp Corner Grd Flr Shop, Coffeeshop but they will always come with a premium.

This sector is more sophiscated, but interesting and much hassel-free when u hv a good tenant.

Now commercial ppty mkt is HOT, bcos lots of resid investors (local & foreigner) r entering to purchase.
:roll:
mort
Silver Forum Contributor
Posts: 34
Joined: Sat Jan 16, 2010 10:18 pm

Post by mort »

Hi Dennis and meowweom,

Thanks for the sharing.

Certainly help me to see the commercial property environment better. Indeed much more complicated than what I imagine.

Looking forward to attending Dennis's property seminar.
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