Residential & Commercial Real Estate

At Premium Lifestyle Group, our team of property experts are here to assist you in the acquisition of both residential and commercial real estate.

If you are like like most you people, you may unsure which is the best option for you. The debate on whether it’s better to invest in residential over commercial properties continues to divide investors. Proponents of investing in residential say it’s the least risky option, while those who are in favor of commercial would argue that commercial is safer due to its cash flow potential.

Smart investors of course don’t choose between the two: They look at both to see how it may fit their portfolio.

The Positives on Commercial Property

The average rental return for residential properties across Australia’s capital cities is 3.6% according to CoreLogic RP Data. In contrast, it’s not uncommon to get anywhere between 8% and 12% gross rental yield for commercial properties.

While a residential tenancy can turn over every six to 12 months, a commercial tenancy can be anywhere between three and 10 years. Tenants also tend to stay longer especially when they’ve invested some capital customising the premises.

Unlike residential properties where landlords are liable for paying rates, such as council, water and body corporate, commercial tenants pay these outgoings for you.

The Negatives on Commercial Property

While commercial property looks attractive on paper, there are potential risks you need to be aware of before investing.

When the economy is strong there is a generally a strong demand for commercial properties however when there’s an economic downturn, demand for commercial premises usually falls.

While commercial properties attract long-term leases, it can take longer to find a tenant. It’s not uncommon for commercial properties to have long vacancies, which means you will need to cover all the cost during this period.

Changes in supply conditions can create potential problems for investors. An increase in new property coming on the market in the same area creates a threat to existing tenancies as tenants may look to upgrade or expand. Strong supply can also reduce potential yields.


While major infrastructure changes in the area can attract commercial investments there, it can also lure tenants away from existing areas and older commercial premises. This could result in your property becoming vacant.


The value of commercial properties closely correlates with the lease on the property. If a commercial property becomes vacant, or the lease is about to expire, the value of the property would generally be expected to fall. In contrast, any price falls associated with residential properties are generally less dramatic and usually happen progressively over a longer period of time.

So, Should you Buy Commercial or Residential?

At Premium Lifestyle, the first part of our approach is to better understand your circumstances. Once we have an overall understanding of your financial situation, we will formulate a customized proposal to best meet your needs and goals.

Contact us today for a free consultation


We look forward to you becoming a part of the Premium Lifestyle Group.



What some of our customers say about us:

  • Shaughan and his team are amazing and I refer them to as many of my friends and family as possible. The investment that they helped me with has worked out extremely well, I couldn't be happier with where it is at the moment. I can't say enough good things about the experts Shaughan referred me to - from Mortgage broker, to Property Management, everyone has been amazing. I will be using Shaughan for my next investment. I am more than happy to share more of my experiences with the Premium Lifestyle Group, and would be happy to take calls/emails with more specific questions/feedback.

  • Hey Shaughan Well we got our cheques from the ATO and have booked a trip to Hawaii for Christmas/New Year. I know this probably isn't in keeping with solid financial practice, but try talking us out of it! The property has been running on auto pilot with the agents you referred us to looking after it splendidly. All I do is update the numbers on a spreadsheet every month and when tax time comes fill in the forms and before you know it.... Aloha! A big thanks for all your energy and help in getting us into this position.

    Bob and Tracy
    Bob and Tracy
  • This is just a quick note to thankyou for patience and professionalism in regards to your organising of my financial matters. I am a huge advocate of your system as it has really changed the way I look at my life. I now realise my earning potential and have a positive outlook on my ability to achieve financial freedom. The plan you developed has created enormous relief over the last couple of months and for that i am incredibly grateful. I look forward to our next meeting to discuss further opportunities.

    Paul Breen
    Paul Breen Kirrawee NSW


Any information in this website and the links provided are for general information only. It does not take into account your personal financial circumstances, needs and objectives. You should consider seeking specific advice in regards to your personal situation, from relevant licensed professionals, before proceeding with any strategy. Premium Holdings Pty Ltd is a licensed real estate company, specialising in property investment, with associations to independent legal, financial and taxation experts.

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