Please browse our Commercial Property opportunities available via the menu on the left-hand side.
Commercial Property is quite a different investment from residential property. However, everyone needs to start somewhere and
residential investments provide the perfect vehicle to get into the property market and start understanding how it operates.
However sophisticated investors ultimately build a portfolio of commercial properties, and take advantage of the generally
higher yields available in this sector.
Commercial properties provide more stable capital appreciation and are not as cyclical as residential investments, which
are prone to highs and lows. They also have longer leases and therefore are less administrative than residential, but most
importantly commercial properties tend to have higher yields, which means that the property becomes cash flow positive in
a shorter period of time. Ultimately you should be investing in any property for cash flow as this is what will give you
the best vehicle to reach your financial freedom.
At the moment, there is a huge trend towards sectional title of commercial property and this is due to the fact that small
to medium businesses want to be able to own their own property - Read more about Sectional Title Properties. With the economy booming and decentralisation taking place,
there are more and more small business who are looking for convenient office space which they can afford. This offers
property investors the opportunity to get into commercial, but not taking the huge risks of getting involved in a big
project, while being able to learn all the same lessons.
A few comparisons between Residential & Commercial properties:
Residential
Rental quoted monthly
Tenants have little interest in maintaining or improving property
Leases are non existent or short term
Tenants complain about minor problems
Bureaucrats tend to stick their noses in protecting the rights of the tenant
Capital required to buy can be minimal
Banks will lend 100%
Appraised value when empty is not much less than when tenanted
If property is empty – easy to find new tenant
Management overhead is high
Deal with people
Commercial
Rental quoted monthly or quarterly
Tenants have a strong vested interest in keeping the property looking good
Leases tend to be long term
Tenants tend to fix minor problems
Bureaucrats tend to leave you alone
Capital to buy can be large
Banks will lend 60 -70%
Appraisal when tenanted will be 2 to 3 times more than when empty
If property is empty – difficult to find tenant
Management overhead is low
Deal with contracts
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The Power of Property
This concise and easy-to-read book covers just about everything (tax, costs, finance, legal entities, etc.) that you need to know about buying a property in S.A.
Invest in the most sophisticated property market globally. IPS has the total solution for investing. Want to know how? 
This concise and easy-to-read book covers just about everything (tax, costs, finance, legal entities, etc.) that you need to know about buying a property in S.A.
R 5,985,000
