They say that the best way to prepare for the future is by investing your money today. Now, there are a lot of different investment vehicles out there that you can choose from. However, investing in commercial real estate is perhaps one of the best options that you shouldn’t pass out on.
It’s already 2018 but a lot of people still have doubts and second thoughts about investing in real estate. Well, if you’re one of those guys then you need to take a close look at what we’re going to discuss in this article because this might just help change your mind about things.
There are a ton of great reasons why you need to think about investing in commercial real estate. Here are the 7 best ones.
- It Gives You The Ability To Leverage
One of the best ways to make your money grow is by using leverage and with the use of commercial properties, you can have the option to place debt onto the property that’s going to be way higher than the investment that you put into them. Through this, you’ll be able to purchase a whole lot more using other people’s money.
- Commercial Properties Have High Appreciation
Based on historical data, commercial real estate tends to appreciate faster in terms of value compared to other types of investments. This is particularly true if you can make improvements on your properties in a very cost-effective manner. By doing this, you can make your properties more appealing thus, increasing their value over time and if you are interested, you can definitely check out these retail mall singapore for possible investment options.
- It Can Serve As A Regular Source Of Income
You can get a steady flow of income from commercial properties with the help of leases. What’s even better about this is the fact that commercial property leases go for a much higher rate compared to residential properties. In addition to that, commercial properties tend to keep their tenants for a much longer period of time and there are also lesser vacancies so competition won’t be that tough. This means that you’ll properly gain more money from your commercial investment compared to what you’ll earn from your stock investments.
- Commercial Properties Have Intrinsic Value
Real estate properties possess intrinsic value, which isn’t the case for other investment classes. If you get to choose your commercial property well both in terms of location and structure you can be assured that it’s going to have value even if the tenant that uses it becomes unsuccessful. This is why most people look for property investment hotspots where they can make the most out of their investment money.Because of this fact, commercial real estate is claimed to be way more stable compared to investments made in the stock market. This means that it’s a lot less risky and offers much higher rewards.
- It Offers Tax Benefits
There are only a selected few investments out there that will offer you tax benefits and real estate properties are one of them.With real estate, you’ll have the benefit of mortgage interest deduction as well as depreciation deduction. Both of these tax benefits will help you offset your income stream and lower down your tax bill. However, always see to it that you seek professional advice so that you can make the most out of all your benefits while avoiding errors that might cost you a lot of money says John from Malta Sothebys Realty commercial division.
- There’s A Lot Less Competition
Compared to the residential market, the commercial real estate market has a lot less competition which is the reason why if you don’t act right away in the residential market someone else will surely end up getting the deal instead of you. This is not the case for commercial real estate because there’s a lot less investors here who are interested. Because of this, you have a really good chance of finding awesome deals.
- You Can Take Pride In Your Ownership
Even though this isn’t something that’s going to have a direct effect on your ROI, the thought of having a good investment will surely be very satisfying. This is because your commercial property is going to have a huge effect on your community and its economy.
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