Commercial properties are another option for those looking to invest.
With a commercial investment property, the investor doesn’t rent their property out to tenants who use it as a home. Instead, tenants are business owners that need to use the property for office or retail space.
Commercial properties can still generate rental income the same way a residential or student property can, but selling them and generating capital growth returns can be more tricky.
This is because the market for residential properties is larger than the commercial property market, so selling a residential investment property to another investor or a home buyer tends to be easier.
A benefit of commercial property investment is that these properties often generate a larger income through higher rental costs.