If you have decided to invest in real estate then you certainly know that this market sector has been greatly affected by the financial crisis. However, over the past couple of years the economy has started to get back on track: construction companies have started to build again while investors have invested massively in residential and/or commercial real estate. If you want to invest your money into something that will surely pay off over the years then commercial real estate is a very good option and here you will find out why!
What makes commercial estate so sought-after these days is the fact that it is valued differently: the bigger the estate, the more productive it will be (unlike residential estate, where investors put emphasis on comfort rather than on productivity). Besides this, the value of a commercial property tends to be more stable over the years unlike it happens with residential properties which tend to depreciate depending on the sales that take place in the neighbourhood – if any! It often happens that investors pay attention to the revenue-generating potential of the commercial property, rather than to the overall setting or location. The more profitable a property is the more it will spark the interest of high yield investors.
Another important reason why you should focus on investing in commercial property is that the income and the cash flow is significantly higher for commercial estate as opposed to residential estate. While the latter option is aimed at families who are looking for a place to stay commercial properties are designed for business owners who want to improve their productivity. For instance, you can buy a commercial property and then lease or rent it for a significant sum of money. The return on investment is undoubtedly more profitable when it comes to commercial property. This is why this type of real estate remains the first choice for thousands of wealthy investors.
In spite of the tremendous potential these properties have in the long run, there is significantly less competition in the commercial field as opposed to the residential field. It is known that the investment industry is a highly competitive environment but if you aim for a segment where competition is scarce and you have more chances to find a trustworthy reputable and reliable buyer/tenant, then you should take commercial properties into account.
If you are looking for an asset that has an excellent long-term appreciation potential then you should know that commercial properties are your best shot. Throughout the years, commercial real estate investments have provided an outstanding appreciation in value, given the fact that the value of a commercial property can be easily influenced by the activity of the owner. Affordable improvements to the property (that will boost its usability and functionality) coupled with the supply-and-demand balance which is the basic principle in marketing can dramatically impact the asset value in the future.
Last, but certainly not least, a commercial property is considerably more secure as opposed to a residential real estate. Both the land and the property are highly valuable, thus providing investors the peace of mind they need knowing that their asset is secure and they can earn an income no matter what happens with those that will rent the property in the future. Commercial properties from Parker Barrasare less prone to market fluctuations, unlike it happens with many other assets. Besides this, there are numerous tax benefits that should not be neglected either – a professional and experienced tax advisor can offer you in-depth information on how your commercial real estate investment will benefit you in the long haul.
Abbas Hussain, a regular guestblogger for Khusan, writes on behalf of Integrity SEO Experts, which is a company that serves a number of clients in the property and real estate industry.
This article reflects the personal opinion and expertise of the mentioned author and not that of Khusan.com