Commercial Property Retiree Buyers

RETIREES have become key players in the commercial property market, the Ray White Commercial Group says.

Chief executive Mark Williams said people in their 60s and 70s had become regulars at auctions nationwide as they looked to invest in commercial property.

“Around Australia we are seeing a lot of retirees entering the commercial property market,” Mr Williams said.

“During the global financial crisis, people have been looking for more certain investment and retirees see commercial property as a highly viable area to invest their money.

“Commercial property, particularly good quality office, industrial and retail premises priced from $500,000 to around $5 million, is proving to be very attractive for these investors.

“If they purchase in their local area, they can look at and feel the property and even more importantly they are comforted by having a quality tenant with a longterm lease of as much as five, seven or 10 years.”

Ed Bullis from Ray White Commercial Cairns said this trend had been slow to catchon in Cairns but it did make sense.

“It’s a solid and stable investment from which you can derive 8 to 10 per cent return,” he said.

Mr Williams, meanwhile, said commercial buildings offered great long-term yields, especially if there was a government or corporate tenant in the building.

“The elderly investors can see that these tenants provide their investment with more security,” he said.

“This investment with quality tenants allows them to go away on a trip around Australia or overseas with complete peace of mind.”

He said Ray White Commercial increased the number of auctions nationwide last year.

Photos: Commercial Property Retiree Buyers - click to enlarge