Top 7 Advantages Of Investing In Commercial Property

By Author: Rob Wilson
Total Articles: 2
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Real estate will forever remain a popular means of investing one's money. However, most people only look towards investments in residential property investing. While such real estate ventures are fine, they are only one half of the equation. Commercial property (properties related to business) can also prove to be great investments. Here are 7 reasons why:

Vacancies are much less common when you deal with commercial real estate. Residential renters have a tendency to up and move with frequency but a business may rent from the same location for an extended number of years. Often, it would not be financially wise for the business to move so vacancies are left to a minimum.

In addition you are far less exposed to the risk of vacancy with a multi unit investment, since you have a number of sources of rental income. This is in contrast with a single tenant residential situation, where you are more exposed to 100% unoccupancy.

When you have a mortgage on a property, you have to meet the monthly payment obligations. With the commercial property paying monthly rental ...
... obligations, the income deriving from the rental can be put towards the mortgage payments. Additionally, the equity of the property will (hopefully) increase during this period of time, which will make the value of the property increase.

Far more investors look towards residential property for their investment decisions. This can create a lot of competition in the marketplace and those looking to avoid dealing with such competition or, at the very least a reduced amount of competition will want to explore commercial property purchasing and rental. With such lack of competition, the potential for more opportunity arises.

Owners of commercial property are also often less emotionally attached to their building, than are homeowners of residential property, this can make them easier to strike a deal and negotiate with.
Multiyear leases can be signed which means a lot of the worry about how long the person will be willing to operate their business will be removed from the equation. Barring the business losing money, you can generally expect the business to remain in its location for the duration of the lease. The longer that the commercial property is retained, then the greater the opportunity for high capital appreciation.

The maintenance on renting commercial property is a lot less complex that it would be with residential property. Mainly, the problems that arise with commercial properties are often outside the scope of the landlord's responsibility, which means the landlord is never called into the equation. In addition, commercial properties are often open to the public, making to easier for you as a landlord to monitor the condition of the building and ensure that your investment is protected.

These are seven solid reasons to become involved in commercial real estate. There are many more as commercial real estate is an excellent venture to be involved in. First and foremost remember that when you have a great location, businesses will want to rent from you. That is a truism to commercial real estate that allows those investing in commercial property will find helpful to the profitability to the entire process. And the ability to procure a profit is the main motivating factor behind signing on to a commercial real estate deal.

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For more information about Scottish Commercial Property please visit on www.compropregister.com