Many people are investing in commercial real estate because of its reliability. Regardless of the market circle, one can be sure to gain some profit from commercial real estate investment. There are different ways through which one can invest in commercial real estate. First, you can choose to rent out the property, you can flip houses, you can buy stocks related to real estate, or even consider real estate investment trusts. Although there are high risks involved, it is also very fair to say that there are also high rewards.
Whether you are just getting started with commercial real estate investment or you have been concentrating on residential real estate investment, commercial real estate can be a better place for you to put your money. Marika Tolz has worked as a commercial real estate risk manager and knows very well why people should try it out. Here are some of the reasons why you should invest in commercial real estate
This is the first reason why many people consider investing in commercial real estate. The potential in commercial real estate should be the reason why you should consider it. This is because commercial buildings always come with higher price tags and higher rents. Therefore, it has a higher return potential. Instead of making a few dollars in a residential real estate investment, you can as well earn a thousand or even ten thousand and more in a commercial real estate investment. You just have to make sure that you are investing in the right property and at the right location.
It has tax benefits
You should also invest in commercial real estate property because of the tax benefits that come with it. As a property owner, you have depreciation which can simply allow you to deduct a part of your income for your tax every year. This is what many investors use to reduce the tax burden. It is also very possible to avoid any tax gains when you sell your property. In simple terms, there are many tax benefits that commercial real estate investors enjoy.
There is less competition
Compared to residential real estate investment, there is less competition in the commercial real estate industry. Marika Tolz has worked in commercial real estate and can affirm this. You can take this opportunity to find commercial property and use it to your advantage.
There are many investment opportunities
There are also many investment opportunities in commercial real estate investments compared to residential real estate property investment. You can choose to keep it small, you can invest in a high-rise building or a mall. There are many things that you can simply invest in depending on your goals and the amount that you would wish to invest in real estate.
Another thing that you should know about commercial real estate investment is that there is less turnover. Most tenants must sign at least a three years lease agreement.