“Fear melts when you take action towards a goal you really want.” -Robert G Allen
There are several reasons why owning commercial property is better then owning resident property. The reasons are clear for anyone who has ever worked as a landlord. Cranking tenants complaining about everything on earth in the middle of the night.
Most people invest in residential real estate because commercial real estate feels like unchartered waters and we are afraid. How exactly does a commercial landlord do, act, and say? Commercial property must work pretty well, after all Donald Trump started his emperor by being a commercial property 'landlord' and if it worked for him it can work for you.
Below are a few reasons why you might want to consider investing in commercial real estate instead of residential.
The first reason that commercial real estate has a higher rate of return then residential properties. Commercial property is space for businesses to sell their products and services. Their businesses depend on the number of visitors they receive each day in their store.
The monthly rent on a commercial property is based on a certain percentage of the profit the company makes each month. As the businesses your rent to, make more money so do you. When a business comes and want to rent from you they do so because they know you have a good location.
These businesses know the value of being centrally located and they are willing to pay to be in the right place. Location is less important for residential properties and it takes time to fill up your real estate.
Most commercial renters will fix problems and minor repairs on their own with out calling the landlord. This is because they realize that problems interfere with their business and need to be taken care of immediately. Unlike residential renters who need the help of a landlord to take care of repairs. The updates done on commercial property can be fairly substantial and stay with the space when the business moves on.
Companies usually need to put in networking and cable wires, sound systems, and electrical outlets. All of which increase the market value and marketability of your commercial space. If you are interested in buying and renting property do not over look the benefits of buying commercial property.
It is far more passive then residential real estate and appreciates in value much quicker. Being a commercial 'landlord' is far easier and you have the ability to network with people and businesses which you may work with in the future.
COLIN KUMAR
Barfoot & Thompson Commercial
m. 64 27 684 1114 | p. 649 358 0989
c.kumar@barfoot.co.nz
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