By MoneyIQ

Recently I met up with an old classmate of mine, who had just purchased a commercial property for investment purposes. I thought it would be great if he could share some of his experiences when buying commercial property, and we’ve put up some quick tips for you:

1. Tenure

Most commercial properties in Singapore are either 60 years leasehold or freehold. If you are an investor, it will be best to work out what fits your budget. Naturally, a leasehold property will be much cheaper. However, he said he is not too concerned about the tenure as long as the rental can cover the mortgage and provide some extra cashflow. He literally did not have to fork out any cash post the initial downpayment.

2. Rental Income

Next, does the property come with rental income (i.e. tenant) which can cover the mortgage? If not, does it have ...