How to own a piece of Sydney or Melbourne CBD

Most Australians love property but tend to focus investment on residential properties, many don’t realise that they can easily own part of an office building which allows them to spread their investment across multiple properties. This may even be a suitable investment in a Self Managed Super Fund.

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Article DAte

February 27, 2020

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Investments

How to own a piece of Sydney or Melbourne CBD

Did you know that you can own a piece of a CBD office building in Sydney or Melbourne from as little as $100k? Most Australians love property but tend to focus investment on residential properties, many don’t realise that they can easily own part of an office building which allows them to spread their investment across multiple properties. This may even be a suitable investment in a Self Managed Super Fund.

Once of the major benefits of commercial property vs residential is that yields are considerably higher with 6+% not uncommon. Commercial leases also tent to be much longer than residential and tenants generally pay the outgoing expenses such as strata and water.

Price growth particularly in Sydney and Melbourne has been very strong in recent years as institutional and offshore investors look for stable assets with yield.

Property syndicates are a common way to own individual commercial properties for multiple owners. These are generally only available to investors who are classified as wholesale but investment amounts can be as low as $100k.

Property syndicates are managed by professional fund managers and property operators such as AVARI Capital, they look after the leasing and also any improvements to the building which can often add value to the asset. The above photo is a building in Sydney owned by our investors, we manage $1bn in assets like this.

We are looking at a number of CBD office buildings right now, if this is of interest please feel free to get in touch.

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