Commercial Property Investment is always a Big No-No for a common investor. There is common perception that investment in commercial property is meant for large investors only and not for small investors, it is not true always. One of the most common question is whether to go for Commercial Property or Residential for investment purpose for commercial property.
Some Prerequisites of Commercial Investment
Before going for commercial investment the first and the foremost thing one should keep in mind is Location. Location is everything for any investment as choosing better location will give huge capital appreciation to investor. What kind of demand exists in the market should also be taken care of. If the investors goes with renting option, he should choose quality tenant. This will provide him with higher security. Also investor should focus more on diversification and should invest on diversified property. He should not invest all his savings in same property this will help him to earn higher in this ever changing economic structure. Some popular property options for commercial investment are as follows.
- Industrial Property
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Industrial property can mean many options such as warehouses, manufacturing units, research units and the like. With these kinds of properties, it can be more difficult to determine demand and you might have to look at the market as a whole and also to gauge how to get better tenants. Also industrial property is used by big industries there are chances of getting higher returns in industrial property investment than any other investment.
- Raw Land Investment
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Investment in raw land can be extremely profitable for commercial investor. I can be lucrative for the ones who understands the market. One can use raw land in several ways such as giving it on rent to farmers to grow crops or to maintain live stock, or if the land is wooded, you could allow logging companies to harvest the timber on the property. One can also buy land and can take advantage of price fluctuation and sell it later on higher prices. It is completely an investors’ choice whether to rent it or to sell it on higher prices depending on his immediate financial needs.
- Office Buildings
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Office space or building is always in demand be it a small or big city. If you live in a major metropolitan area, you could invest in a high-rise with multiple office units. If you live in smaller town, single tenant building is more appropriate. It is much easier to project for future profits as service sector industry is growing rapidly worldwide which assures higher demand for office building.
- Storage Units
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Storage units is one of the oldest form of commercial investment as it does not seem to be glamorous but it definitely is a high income investment option. Storage is must for manufacturing units thus this option can prove to be great opportunity for investment.
Lastly, one should never buy a commercial property that is part of a residential complex. It looks quite profitable but ultimately it will cost them as high maintenance one. It is always riskier to buy a commercial property but if the market is favorable and predictions are correct it works as jackpot. For further information check out https://www.investmentproperty.loans/