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What to buy House or Shop

Satvik
Satvik Posts: 2 Newbie
edited 20 October 2016 at 12:59AM in House buying, renting & selling
Hi,
Please advice should I buy a shop or a house for investment purpose.

My current situation -
My annual Income - $160 K including Supperannuation and befoer tax . I am a Software Engineer
My existing debt - Bought first home 1.5 years back with 85% loan, house cost was $400K.
My family - 2 kids, 3 and 5 years old. My wife will start work after one year and She could earn $24K pa

Current situation - I have a saving of $100 K. and I am considering buying another investment property of around $500-$600K.
I am confused between a
i) 3 BHK of approximately $550K
ii) Shop in a developing shopping centre off the plan which I can lease later or use for my own business.
iii) Shop in established Shopping centre of $450 K
iv) Shop in small shopping centre of suburb around $280K.
iv) Buy a block of land for around $200K and build it a 4BHK 2 storey house in next one year and sell.

Please advise which is the best option for a good profit in short term or long term.

Thanks everyone in advance for your valuable suggestions

Comments

  • bobobski
    bobobski Posts: 771 Forumite
    Seventh Anniversary 500 Posts Name Dropper Chutzpah Haggler
    How well do you understand commercial property and your responsibilities as landlord? I have friends who are residential investors who would never enter the commercial market. Similarly, I am a commercial property solicitor whose knowledge of resi property law is not good at all. You're comparing apples and footballs.

    If your knowledge in both areas is good then I suppose it comes down to the numbers.
  • Satvik
    Satvik Posts: 2 Newbie
    Which can be a good idea for short term profit.
    I was considering commercial property to put on lease now and can use it for myself later in future.

    thanks
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    This is a UK forum. You self evidently aren't in the UK. Taxation will be different where you are.
    Advice you get will be pretty useless since tax treatment is a major component of investing in property.
  • dgtazzman
    dgtazzman Posts: 1,140 Forumite
    With that amount of money involved, I'd be seeking professional advice anyway, rather than consulting a bunch of strangers on a forum on a different continent...
  • DaftyDuck
    DaftyDuck Posts: 4,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    dgtazzman wrote: »
    With that amount of money involved, I'd be seeking professional advice anyway, rather than consulting a bunch of strangers on a forum on a different continent...

    Oh, I don't know, it's one way people make a lot of money..... just not usually those who initially had it! :)

    OP... Seek professional advice, face to face professional advice.
This discussion has been closed.
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