Investing into commercial properties is far better than residential properties. We claim this because of the steady cash flow, high liquidity, and great demand of commercial properties all over the world. Also, commercial properties are considered as comparatively safer and sounder form of investment. You can own such properties for doing business in them yourself or you can rent them, or even sell them after holding for sometimes, the asset is going to pay you a lot guaranteed.
Commercial property is more lucrative and ruminative as it yields you a higher rental return and owing to its greater demand, it also returns with a great amount at the time of resale. However, buying and maintaining commercial property is not an easy chore, and not anyone can manage this business because it requires a higher amount of capital investment and also diverse portfolio and experience of the investor.
If you are someone who is able to pay higher upfront for owning a commercial space for you including shops, malls, and office spaces, and want to know where to begin from, we have dedicated this post for you to learn the basics of commercial investments. We have listed 5 different ways of commercial real estate investments for you to choose from. So without wasting any time let’s start discussing our core topic.
Owing a shop
The most basic and easiest way of investing into real estate is owning a shop for you. But, this is not as easy as it seems to be. You have to conduct an in-depth market research to know the areas of demand and what kind of property is demanded there. Then the next step would be choosing the ideal location for you to invest your capital.
Owning shops in high-rises and commercial areas is considered to be most profitable, as they stay in demand throughout the year. You can use this are for both reasons, to hold it and sell it on greater price or you can rent it for annual rental yield.
Buying an office space
Another way to invest into commercial real estate is that you can buy an office space in areas where there is appreciation for them. For instance, at places where there are lots of offices like real estate, doctors or pharmacists, or lawyers, you can buy an office in such a place.
Now, it up to you to find an ideal location for you to invest, and it must not be a difficult task for you. As, you can find lawyers’ chambers adjacent to the courts, doctors’ clinic near to the hospitals, similarly you can find what you are looking for nearby.
Furthermore, owning an office space can prove to be your best investment as the tenants occupy these kinds of properties for a longer while. You won’t have the fear of vacant space because of the long term agreements that you must have signed with the occupants.
Purchasing commercial land
Purchasing commercial land or plots is also a profitable business and investors have been doing this for ages. You can buy a commercial land or plot in a developing society like Rudn Enclave and wait for it to get mature. When the property gets mature you can sell it back getting your chunk of Return on Investment.
You can also make a purchase in developed regions, i.e. from the resellers or the estate agents. This kind of commercial land will definitely be quite more lucrative but it demands greater investment and period commitment. If you are ready for making a long-term investment, we would also recommend going for such an investment.
Commercial property for rent
Another thing that you can do as an investment in commercial real estate is buy a commercial property and lend it to someone for doing business on it. This is also a well-known and famous method of investments as small enterprises, start-ups and entrepreneurs are always there in the market looking for such opportunities. Also, the rental yield of commercial properties is way more than that of residential ones. You can get a steady and huge passive income stream if you own a commercial property that you have lent to another entity.
Moreover, if you own a property in a high-end area with all the modern amenities, you will be able to generate quite more than others by doing business here. These amenities include fire safety alarms, CCTV surveillance, central air conditioning and lifts and elevators. Because, these factors attract the big brands and companies more than anything.
Invest into crowd-funded project
Last but not the least, look for giant JVs and consortiums operating in your area, these organizations very often launch and build real estate projects like complexes that have both residential and commercial spaces. The developers of such projects announce them quite early and call for investments. Owning a commercial property in these projects can win you great profits as such projects gain much of investors’ attention and often built with great diligence because they add up in the developers’ portfolio.
Moreover, such an investment won’t be much heavy on your pockets too, as you will have to pay the amount in a period of 3-4 years and the payment plans are designed in such a way as to cater the requirements of people from almost every section of the society. That’s why such an investment is considered to be the best, most safe and lucrative one among all modes of investment in the real estate market place.
Investing into a commercial rental property is considered to be the best investment and we have told you why. Now, it’s up to you to conduct the market research to find out the most ideal places to invest your capital. Still if you want any help or you have any queries, we encourage you to leave them in the comment section; our highly diligent and energetic staff is there 24/7 to respond to your queries.
Moreover, we also encourage you to contact us through the contact form to get information regarding real estate investments and highest ROI projects in your area.