Both residential and commercial properties can be profitable and can help you achieve financial freedom… when done right. Commercial property investment requires though a good amount of real estate knowledge and experience.
For your money, commercial properties typically offer more financial rewards than residential properties, but there also can be more risks.
The advantages of investing in commercial property include
- It provides strong and reliable returns in the form of both income and capital growth.
- Higher Returns: Commercial property investment is known to yield higher profits than residential property investment. However, the risk associated with commercial properties is also higher than the risk of investing in residential property.
- Experience Pays Off: Before starting your commercial property investment, you will need a large base of knowledge and experience, as commercial property investment involves a number of legal and financial processes that are more complicated than with residential property investment.
- Maintenance Costs: One of the advantages of investing in a commercial property is to not worry about maintenance and reparation costs. In most commercial property leases, the party leasing the place will be responsible for any reparation costs that may arise during its stay in the property.
- Security: returns higher and they are usually more secure
- It has been viewed as a good hedge against inflation
Professional relationships. Small business owners generally take pride in their businesses and want to protect their livelihood. 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.