💡 Investing in commercial property?
Higher property tax rate
Commercial properties are taxed at 10% of annual value, significantly higher than residential properties (4-16%). This affects your net rental yield calculation.
1 of 3
Gross Yield
0.00%
Annual rental / price
Net Yield
0.00%
After all expenses
Cap Rate
0.00%
NOI / purchase price
Cash-on-Cash
0.00%
Annual return on equity
Property Details
$1,500,000
$500,000$10,000,000
$8,000
$2,000$50,000
36 months (3.0 years)
12 months (1.0 years)120 months (10.0 years)
Financing
40% ($600,000)
30% ($450,000)100% ($1,500,000)
3.5% p.a.
2.0% p.a.8.0% p.a.
20 years
5 years30 years
Costs & Projections
$50,000
$0$500,000
$500
$200$5,000
2.0% p.a.
0.0% p.a.10.0% p.a.
10 years
1 years30 years
Investment Analysis
Initial Investment
Down Payment (40%)$600,000
Stamp Duty (BSD)$0
Legal Fees$5,000
Renovation / Fitting$50,000
Total Initial Cost$0
Monthly Cash Flow
Rental Income+$8,000
Loan Payment-$0
Maintenance-$500
Property Tax (10%)-$0
Net Monthly Cash Flow$0
Investment Metrics
| Metric | Value | Description |
|---|---|---|
| Gross Rental Yield | 0.00% | Annual rental income / purchase price |
| Net Rental Yield | 0.00% | After expenses and loan payments |
| Cap Rate | 0.00% | NOI / purchase price (unlevered) |
| Cash-on-Cash Return | 0.00% | Annual cash flow / initial investment |
| Total Return (10Y) | 0.00% | Rental income + capital appreciation |
| Future Value (10Y) | $0 | At 2% appreciation p.a. |
Loan Summary
Loan Amount
$0
Monthly Payment
$0
Total Interest (20Y)
$0
Commercial Property Considerations
- • Property tax is 10% (vs 4-16% for residential)
- • Higher down payment required (30-40%)
- • Tenant quality affects property value
- • Lease terms typically 2-5 years
- • Location and accessibility crucial
Investment Advantages
- • Higher rental yields than residential
- • Longer lease terms provide stability
- • No ABSD for commercial properties
- • Business tenants often well-capitalized
- • Potential for capital appreciation