Common Commercial Real Estate Myths that Need to be Clear
Posted by Chandak Group on January 22nd, 2021
To do some research online about commercial real estate before investing is a smart idea. But if you blindly believe in any piece of advice that you hear is a different story.
Unfortunately, plenty of commercial real estate myths still encounter many investment circles. While these beliefs are demonstrably false, they can still prevent prospective investors from taking the first step to building their portfolio. Many business people are experts in their field and tenants in commercial real estate properties. But they might get trapped for some of the myths about commercial real estate. Therefore here some of the most common myths and their facts that why they are not accurate.
Myth: Renting is cheaper
If you own a property, it gives you the ability to build equity. Ownership also creates tax benefits that you can take advantage of each year. Capital expenses are usually lower when renting commercial real estate as opposed to buying, but that doesn't automatically mean it's cheaper to rent. While the upfront capital requirements might be less, renting can easily carry higher monthly costs. A commercial office place in Andheri east can be the best area to buy or rent the office.
Myth: Investing in commercial real estate is too risky
Every investment comes with a risk, and commercial real estate is no different. But it's said that investing in commercial real estate does have certain advantages over other types of investment. Commercial real estate isn't subject to the same type of volatility one can experience when investing in the stock market. Thus, commercial real estate is one of the safest investments you can make in terms of risk.
Myth: The person should be rich enough to invest in commercial real estate
It is considered to be the biggest myth of commercial real estate, which often dissuades people from investing in this sector. Buying commercial office space in Andheri east is a good decision, and people who are economically rich and stable can only afford to buy a property in this area. But this is not true at all, and the reality is far away from this belief. Now, banks and other financial institutes provide the loan option if they want to invest in an office. As of now, the bank provides you with 80 percent of the total property value loan, and you have to repay them through EMI, which is quite flexible and adjustable. Thus now, investment in commercial property has become easier, and anyone can invest in it.
Myth: You need "office" space
The world of commercial real estate is changing day by day. Office buildings are getting turned into residential properties. Malls are being turned into office spaces, and just about everything is being converted to industrial space if it can be. When you look for your next office, don't only look at office buildings. Just look at spaces that can work for you. Commercial office space in Andheri east is a good option to start your business.
Before investing your money, you should do some research about properties and funding. You should also consult the experts. It may be cheaper to do it yourself now, but that could lead to costly mistakes in the future.
If you try to separate myth from fact while attempting to secure a commercial loan, simply reach out to our experts or visit The Chandak Group - www.chandakgroup.com. They will be happy to help you take the next step in accomplishing your investment goals. They also offer great deals if you are interested in buying a commercial office space in Andheri east or office space in Andheri.
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About the AuthorChandak Group
Joined: July 8th, 2019
Articles Posted: 60
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