Q - What is commercial and residential real estate?
A - Commercial real estate is typically retail shops and offices while residential
real estate generally refers to residential homes. The term "commercial real estate"
is generally accepted these days as covering industrial as well as commercial real
Q - Some people talk in feet and square feet and others in metres and square metres
and it's confusing. What does it all mean?
A - Despite the change over from imperial to metrics the old ways still persist
as many people still cannot fully relate to metrics. The conversions are:
- 1 metre=39.3701 inches
- 1 metre=3.28084 feet
- 1 square metre=10.764 square feet
- 1 hectare=2.47105 acres
Q - Is commercial and industrial real estate a better investment than residential
A - It's a matter of opinion in many respects, however well located and well managed
commercial or industrial real estate can perform extremely well and can pay huge
dividends over the long term. Commercial and industrial real estate generally offers
higher returns than residential real estate with less tenant turnover and tenancy
problems. Remember that commercial and industrial tenants generally take minimum
lease terms of 3 years while residential tenancies are often very short term which
is costly as every time your property comes vacant there is loss of rent, advertising
costs and leasing fees.
Q - I’m an overseas investor who is not a resident of Australia. How much can I
borrow from an Australian Bank?
A - All though you are not an Australian resident, Australian Banks will lend you
70% - 85% of the property value depending on your country. Please refer Overseas
Investors section on our website.
Q - Why should I have my commercial and residential property managed by an agent,
surely anybody can collect the rent?
A - Collecting the rent is only part of the job. When you engage a specialist agent
to mange your commercial and industrial property they do just that - they
manage your property. Management means more than just collecting
the rent. It involves:
- Advising on acceptable lease structures so that your investment not
only retains its value but also has growth built in wherever possible.
- Negotiating lease terms with the tenant to obtain results that ensure
that the value of your property is enhanced by the lease and not restricted or worse
- Dealing with your tenant in an expert, professional manner regarding
queries and problems that inevitably arise from time to time with the property and/or
tenancy - these negotiations should only be handled by professionals to achieve
the best outcome.
- Ensuring the property is maintained.
Advising the owners on rental and sale values and generally keeping them informed
of market trends.
The future value of your property is dependent in no small way on the quality of
it's management - to take chances with a non specialist or to adopt a "do it
yourself" approach is unwise and likely to result in rough running for your
investment and lower returns.
Q - What about the agents fees and charges?
A - Agents fees are generally not regulated and are negotiable. Any successful investor
will tell you that if you choose the right agent they are worth far more than the
fees they charge. Many wealthy property investors owe their success to their choice
of professional real estate agent and they did not gain that agent's loyalty by
cutting fees. Never choose an agent on the fee structure alone. The final result
is where the money is made not through negotiating lower fees.
Q - How do I choose the right agent?
A - Start right here on dwellingsgroup.com.au contact several, ask
if they have expertise with the type of property you are interested in and choose
the one you feel most comfortable with. If you're unsure who to choose list your
requirement or list your real estate directly on the site. The member agents that
feel they can help you will then contact you.
Q - I have questions that are not covered here, where do I go for help?
A - Contact a Member Agent in your State or e-mail us at