Insight Equity Limited

21/02/2023

Recent natural disasters like Cyclone Gabrielle have highlighted the daunting challenges faced by commercial property owners. From damage assessment to insurance claims and reconstruction, the road to recovery can be a long and complex one. Insight Equity explores the top challenges for commercial property owners post-Cyclone Gabrielle.⁠
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https://go.insightequity.co.nz/3KjlllT

21/02/2023

https://www.insightequity.co.nz/new-blog/tchallenges-for-commercial-property-owners-after-cyclone-gabrielle

Cyclones can be a catastrophic event that causes significant damage to both residential and commercial properties. In this post, we will discuss some of the biggest issues that commercial property owners may face in the aftermath of Cyclone Gabrielle.

08/02/2023

Why Invest in Commercial property in New Zealand?

In this blog post, we’ll explore the reasons why investing in commercial property in New Zealand can be more beneficial than investing in residential real estate.

In New Zealand, the real estate market offers a variety of investment opportunities, including commercial and residential properties. While both types of properties have their benefits, commercial properties can offer unique advantages to investors.

31/01/2023

What are six reasons to consider investing in commercial property vs residential property? ⁠
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1. Tenants typically pay for outgoings ⁠
(rates, insurance, management expenses, some maintenance) and often contribute to capital improvements.⁠
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2. Interest Deductability⁠
Interest paid on a commercial property mortgage is considered a business expense and can be deducted from your taxes. Since interest deductability was removed from older residential rentals, returns are now lower in residential property investing.⁠
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3. Longer leases⁠
Tenants typically sign lease agreements that vary from two years to fifteen years (asset dependent) and usually extend for longer periods called rights of renewal. This offers longer term-certain than residential tenant agreements, and can save costs in vacancy over time.⁠
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4. Stronger returns⁠
The rental return on investment for a commercial property can be higher than that of a residential property. Especially when capital improvements enhance the building.⁠
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5. Objective vs Emotive⁠
Commercial property investing is objective and business orientated whereby residential investing can often be emotive when dealing with tenants.⁠
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6. Favourable lease agreements⁠
The ADLS lease agreements typically used in commercial property provides clear obligations to both tenant and landlord, and is considered fair on both parties. The residential tenancies act is tenant-favourable and less attractive to landlords.⁠
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Discover the key to successful commercial asset management with our expert advice!⁠