FEATURE RESIDENTIAL VS COMMERCIAL
There is a deep-rooted belief in the long-term rewards that property offers.
Although enduring confidence is held in residential investment, the same sentiment does not extend to commercial property. Investors with residential property investments outnumber those with commercial investments by five-to-one, even though both are a store of wealth.
Like most investment decisions, investing in either is not “absolutely” or “never”. There are some differences that need a level of understanding before final decisions are made.
Both offer enticing investment opportunities, but over the past few years some residential investors, taking exception to the previous Labour government’s tax changes and the legislative war on landlords, have ditched residential in favour of commercial.
Former New Zealand Property Investors’ Federation chief executive and Hawke’s Bay Property Association spokeswoman, Sharon Cullwick, says many members were looking at switching to commercial property after the tax announcements, but lending changes under
