What is a commercial property?
It may refer to Retail Spaces, Office Spaces, and warehouses, industrial buildings, mixed-use land. However, even when the economy is strong, the commercial Property eventually holds its grip on the growth in value and provides you with a steady income.
Investments in commercial property and residential property are two completely different scenarios. There are pros and cons of both the investments and it is necessary to look into each and every minor to the major point before taking the decision to invest in real estate. The main consideration of this is to get the buyers out of the confusion that is an investment in commercial property worthy??
Let’s try to figure out this by looking at the pros of commercial property investment. Those of you starting out and have confusion regarding the investment in commercial property …then, here’s a list of the benefits you’ll enjoy from successful Commercial property investing.
Pros of commercial property investment
Benefit #1: Strong Rental Yield
The biggest plus point of Commercial property is that they generally provide a higher return on investment (ROI) compared to residential properties. The average rental yield of commercial property depends on the type of commercial property like
Benefit #2: Longer lease period:
The commercial properties have a longer lease period which ranges from 3 to 10 years. The tenants for commercial property do not switch in short durations.
Benefit #3: Cost of furnishing is negligible:
One of the key advantages of commercial property investment is that Cost of furnishing is negligible. Providing tenants with raw units and then tenants modifies the property as per their requirement thus reducing the cost for you. The corporate, banks, business houses or retail chains furnishes the property as per their branding and guidelines to maintain the status.
Benefit #4: Assured Income
Commercial property generally
Benefit #5: Tenants:
Quality of tenants is very important as they tend to attract other tenants in the nearby location. If the location is good and approachable then the rental expected is high.
Benefit #6: Stability of the price:
Commercial properties as compared to
Benefit #7: Less risk against Inflation:
Commercial property prices
Benefit #8: Lower Risk
If we talk about commercial property, then investment in Commercial property is less prone to risk than the residential property or the stock market.
Benefit #9: Tax Benefits
Commercial property provides you with the tax benefits in different ways. There are building allowances, some depreciation benefits and many more….