Perhaps you got some advice from a well-meaning relative that you should invest in real estate, or maybe you have been following the trends of the economic recovery and you are ready to diversify your portfolio. Whatever your reason, you probably have only considered residential real estate options, but what about commercial properties? There are some interesting reasons you should if you haven't already.
For one reason, commercial property is relatively low in terms of investment risk, especially when compared to stocks. The recent 1,000 point dive/400 point climb by the Dow Jones Industrial Average highlights the volatility of the stock market. Unless you are in love with rollercoasters, owning property is a more sensible option.
The income you can derive from property is often quite significant, and leases are steady income free from the fluctuations of the market. You will often be able to realize much more income than a stock portfolio can afford you also. Commercial property has a track record of appreciation, provided you take reasonable care of the property along the way. Select improvements can add to your property value and deliver exponential increases in income over time. Things like providing high speed internet or, even better, fiber optic internet can make business tenants happy by giving them the chance to be ahead of their competition.
One of the ways that real estate magnates expand their portfolio is by borrowing against the equity of the current property. You can get a loan on the full value of the property to use for acquiring additional properties, saving you from having to come up with the money on your own from your savings.
Property often is resistant to devaluation in the face of inflation, particularly in areas where the government is just printing money to try to overcome financial troubles. Property, over time, is the single investment that provides the greatest level of return on investment. When inflationary times hit, property values also go up, keeping investors well shielded. Both the land and the building possess discrete values and they can both increase, sometimes at different rates. No matter what happens to your tenants, you still have an asset that particularly in prime areas will offer you income potential.
Don't forget the tax benefits you get from owning commercial real estate. Not only do you get to deduct the interest on the property loan, but you also can get depreciation deductions. For more details, consult a tax attorney who will be the best resource for the most up to date information on the tax code.
In prime areas, you can charge prime rent for your tenants. This doesn't just mean a nice part of town, but you must also consider the traffic in the area, particularly if you own a retail or office space. Bad traffic patterns will keep people away even if you are in a lovely part of town.
The reasons to get into commercial real estate are many, บ้านมือสอง กรุงเทพ and the reward potential is great. When you are looking to add to your investment portfolio, consider commercial real estate. It could be the best decision you make.
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