5 Simple and Smart Reasons to Invest in Commercial Real Estate
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Date: Mon, Oct 22nd 2018 3:13 pm
Although the Great Recession is nearly a decade behind us, we understand how years of negative industry press and a fluctuating economy can be nerve-wracking. At Simply Commercial, we believe in real estate – we invest in it and build our livelihood around it. We know there will be ups and downs, but we have faith in the long game and work every day to help our clients make smart investment decisions that will serve them and their families well for many years to come.
We understand the trepidation that comes with any significant investment, but if you’re considering a commercial property, we can help every step of the way and we’ve rounded up a short list of the best reasons to invest in commercial properties:
- Smart Income. When you own a commercial space, you’ll benefit from a steady incoming stream of revenue that is typically higher than that of residential leased properties.
- Appreciation. Generally speaking, a commercial property will appreciate at a faster rate than typical bank investments. If you’re able to make cost-effective improvements, your property will be worth even more to a potential buyer down the road.
- Tangible Assets. Hard assets are a great way to diversify your portfolio. Although ups and downs in your valuation are inevitable, your property is here to stay and will always hold inherent value. This can’t be said of investing in shares of a company that could be here today and gone tomorrow.
- Tax Benefits. Real estate is one of the exceptions when it comes to receiving tax benefits for investing your hard-earned cash. A professional accountant can help with the details but two of the largest deductions you’ll be able to claim are the mortgage interest and depreciation deductions. Both will help offset your income and lower the amount you owe come tax time.
- Ability to Leverage. Most people invest to build wealth over time. A commercial investment will allow you to place debt on the property that is higher than your initial investment, essentially enabling you to purchase more assets with other people’s money.
Whether you’re ready to start hunting for the perfect commercial space or just want to learn more about the process, we’re here to help.