Canberra Blog

Commercial vs Residential: What Every Property Investor Should Know

When it comes to property investment, most buyers naturally gravitate towards residential real estate. It's familiar, often seen as a “safe bet,” and relatively straightforward to understand.

But what about commercial property?

From retail and office spaces to warehouses and industrial units, commercial real estate can offer strong returns, long-term security, and unique benefits that residential investments often can't match.

Yes, the entry point can be higher — with larger deposits and stricter lending criteria — but the potential rewards make it a compelling option for savvy investors.

Here’s why:

• Longer lease terms
• Annual rent increases often built into leases
• Outgoings typically covered by tenants
• In the ACT, no stamp duty on commercial properties under $1.9M

That last point is a game-changer. If you're investing in Canberra, this incentive could significantly reduce your upfront costs.

However, success in commercial property requires a solid understanding of:

• Zoning laws
• GST implications
• Lease negotiations

This is where local expertise and professional advice become essential. 

For more information, check out this article outlining the major differences between each investment sector. 

Thinking of buying, selling, or leasing a commercial property? Let’s chat: (02) 6236 9526