Commercial real estate offers excellent appreciation over a longer duration. As the country witnesses the emergence of more and more businesses the demand for business spaces have grown manifold making it one of the most profitable real estate investment. Let’s have a look at 10 reasons that make an investment in commercial property a profitable venture.
The value of the commercial property is consistent even during market crash. Income stability keeps the investor calm and relaxed even when the market turns volatile as the commercial real estate market is largely immune to market slowdowns.
Historically, commercial properties have yielded greater appreciation value. Proactive management and cost-effective upgrades can further improve your return over investment.
Investing in commercial properties at the right location will never let you down even when the property is not occupied making it the safest real estate investment.
Unlike in residential properties, leases in commercial properties can be worked over 3 to 5-year periods and can also be renewed after the lapse.
Lower Tax Deductions
By investing in commercial properties you become your own lessee and can lay your hands on a variety of tax reductions.
With steady and higher returns, investment in commercial real estate can build equity quickly as the property gains greater value over time.
No Furnishing Cost
You can hand over the raw property to the lessee like banks, shops etc. who then furnish it according to their requirements.
The rental increment can be effected at any time in the case of commercial properties owing to inflation and increased market price.
Triple Net Lease
The tenants in the case of commercial properties take care of property expenses which include real estate taxes, building insurance and maintenance which is a big boon for the owner as he is exempted from such expenditure.
The owner obviously wants his property to be well maintained and nicely looked after. While it is in the best interest of the lessee to keep the property clean and shiny. This is where he would run his business and he would not let anything rob the value and charm of his workplace. This means the owner would be relieved from the tension and worries of the upkeep of his property as it would be very well taken care of by the lessee.
Whether it is a commercial investment or residential, you can trust SMC Realty to help you bag the best deal from the top lender anywhere in the country. Contact us today!