Real Estate Investment have been proven time and again for high returns whether it’s residential or commercial. He are 5 reasons to invest in Commercial over Residential Real Estate.
What Is a “Commercial Real Estate?”
Commercial properties may refer to:
• retail buildings
• office buildings
• industrial buildings
• apartment buildings
Reasons to Invest in Commercial Real Estate
Here are some of the pros of buying commercial real estate over residential property.
Income potential: The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties generally have a higher annual return off the purchase price which is a much higher than typically exists for single family home properties.
Professional relationships: Small business owners generally take pride in their businesses and want to protect their livelihood. Owners of commercial properties are usually not individuals, but companies, and operate the property as a business. As such, the landlord and tenant have more of a business-to-business customer relationship, which helps keep interactions professional and courteous.
Public eye: Retail tenants have a vested interest in maintaining their store and storefront, because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment. It’s a win-win!
Limited hours of operation: Businesses usually go home at night. In other words, you work when they work. Barring emergency calls at night for break-ins or fire alarms, you should be able to rest at night without having to worry about receiving a midnight call because a tenant wants repairs or has lost a key. For commercial properties it is also more likely you will have an alarm monitoring service so that if anything does happen at night, your alarm company will notify the proper authorities.
More objective price evaluations: It’s often easier to evaluate the property prices of commercial property because you can request the current owner’s income statement and determine what the price should be based on that. If the seller is using a knowledgeable agent, the asking price should be set at a price where an investor can earn the area’s prevailing cap rate for the commercial property type they are looking at (retail, office, industrial, etc.).
Find out how you can invest in Commercial Real Estate and just how many properties there are to consider. Contact our professional sales team led by NYARADZO: +263 712 636 370
LAND LINES: +263 (4) 790568,+263 (4) 790603
Or visit our site: http://www.hammerandtonguesrealestate.co.zw