Commercial Property shares better than residential -AMP’s Shane Oliver

Commercial Property shares better than residential -AMP’s Shane Oliver by Larry Schlesinger The longer term outlook for Australian residential investment property is “messy”, with price growth likely to be constrained because housing is “expensive” and offers very low returns compared with shares and commercial property, says AMP Capital chief economist Shane Oliver. “Housing is expensive on all metrics and offers very low rental yields compared to all other assets except bank deposits and Government bonds,” Dr Oliver wrote in a new analysis paper following the …

Who’s Really Investing In Commercial Property

Since the global financial crisis there has been a decrease in commercial property prices, resulting in higher yields. This has attracted a growing number of investors to consider commercial property as an appealing addition to their portfolios. Calculating a strong return Part of what is attracting new investors is the proportionally high yields that can be achieved from commercial property investments. A yield is calculated by dividing the property’s net yearly rent by the purchase price. Divide the net yearly rent by the purchase price to calculate the return on investment. So, …