Is Commercial Property a good investment?

[Dennis Ng]

Someone asked:

Is there anybody who can share his/her experience of owning commercial properties (shopspace or shophouse)? Any recommendation which district or building gives better rental? Will the age of the properties affect the loan period from bank?

I have a budget up to $800K. What do you think will be the trend of the price of commercial properties?

My comments:

the first thing is you must be very clear what is your objective? Is it for Capital Gain or for Rental Income?

Are you familiar with the neighbourhood that you consider investing. For instance, a shophouse in Toa Payoh can vary greatly in terms of price and rental due to being located in a different part of Toa Payoh. Sometimes even just a road apart eg. Boat Quay and Circular Road means a great difference in price and rental. Another example, there's a huge difference betwen Centrepoint and Orchard Point even though they are located next to each other in Orchard Road.

Just like any investment, investment knowledge is key.