Are Commercial Properties a Good investment?Posted by KW Blue Pearl on July 28th, 2022  Investing in Real estate has always been considered as a smart move for investors and when it comes to choosing the type of property for investment, it is always a tricky decision to make. For the Investor, choosing between residential and commercial properties can be a real task. But the main question that arises is “Are commercial properties a Good investment”. So the answer to the question is YES!
First of all it is really important to understand what type of property includes in Commercial real estate, Commercial real estate properties include:
1. Offices
2. Retail stores 3. Warehouses 4. Industrial stores 5. Hotels and many more… Investing in commercial property is a good opportunity as they have a lot of advantages and are beneficial on a longer run. During the COVID 19 outbreak, Real estate market have also suffered a lot and keeping in mind the scenario, the current market is the most suitable time as the Investor can get maximum profit out of it. It is often assumed that investing in Commercial property is only done by big business men or brand owners but it is not the case so. Everyone, even the salaried person can buy shops there both physically and virtually which will assure a fixed rental income to them. So, it is really important to understand the advantages of Investing in Commercial property before making any wrong assumptions. Advantages of Investing on commercial property: 1. Higher Rental income
Commercial Properties ensure high rental income for a long duration of time. At this time of market inflation, it provides almost 8-10 percent return which is much more than in residential properties making it a good source of stable Income for the Investors. It is also seen that the Capital appreciation in Commercial properties is much more than in the residential properties.
2. Less to Zero furnishing expenditure
Commercial properties usually cost you nothing when you lease them to someone. All the furnishing cost and the maintenance cost is taken care of by the tenant. This is one of the major advantages of buying a commercial property.
3. Regular Flow
Whether it is an office area or a Shop, Regular income to the Investor from the tenant is fixed every month ensuring regular inflow of income. The leasing period is also usually longer than in residential property so no hassle of finding new tenants, thus ensuring fixed incomes for longer duration.
4. Tenants
For Commercial properties their tenants are usually banks, corporate, business houses or retail chains. So there is no hassle of running after the tenant for the rent on a timely basis unlike in residential properties. The rent of the Commercial property is always on time making it a tension free of deal for the investor.
So , Investing in Commercial property is always a win- win situation for the Investor. Even though a lot of Risks are also involved in buying a property but what is life without risks anyway! Source link: https://kwbluepearlkarolbagh.blogspot.com/2022/05/are-commercial-properties-good.html Like it? Share it! |