Real estate has always been known as the safest of investments.
In
fact, real estate investment completed after proper research into and
evaluation of the property (to determine actual and future value), can lead to
tremendous profit.
This
is one reason many people choose real estate investment as their full time job.
Discussions
about real estate tend to focus on residential real estate; commercial real
estate, except to seasoned investors, typically seems to take a back seat.
However,
commercial real estate is also a great option for investing in real estate.
Commercial
real estate includes a large variety of property types.
To a
majority of people, commercial real estate is only office complexes or
factories or industrial units.
However,
that is not all of commercial real estate. There is far more to commercial real
estate.
Strip
malls, health care centers, retail units and warehouse are all good examples of
commercial real estate as is vacant land.
Even
residential properties like apartments (or any property that consists of more
than four residential units) are considered commercial real estate. In fact,
such commercial real estate is very much in demand.
So,
is commercial real estate really profitable?
Absolutely,
in fact if it were not profitable I would not be writing about commercial real
estate at all!!
However,
with commercial real estate recognizing the opportunity is a bit more difficult
when compared to residential real estate.
But
commercial real estate profits can be huge (in fact, much bigger than you might
realize from a residential real estate transaction of the same size).
There
are many reasons to delve into commercial real estate investment.
For
example you might purchase to resell after a certain appreciation level has
occurred or to generate a substantial income by leasing the property out to
retailers or other business types or both.
In
fact, commercial real estate development is treated as a preliminary
indicator
of the impending growth of the residential real estate market.
Therefore,
once you recognize the probability of significant commercial growth within a
region (whatever the reason i.e. municipal tax concessions), you should begin
to evaluate the potential for appreciation in commercial real estate prices and
implement your investment strategy quickly.
Regarding
commercial real estate investment strategies it is important that you identify
and set investment goals (i.e. immediate income through rental vs later
investment income through resale) and that you know what you can afford and how
you will effect the purchase.
It
would be wise to determine your goals then meet with your banker (or
financier(s)) prior to viewing and selecting your commercial real estate.
Also
remain open minded and understand that should the right (perfect)
opportunity
present itself, your investment strategy might need to be revisited and
altered, sometimes considerably.
For
example: If you find that commercial real estate, (i.e. land) is available in
big chunks which are too expensive for you to buy alone but represents
tremendous opportunity, you could look at forming a small investor group (i.e.
with friends or family) and buy it together (then split the profits later).
Or
in another case (i.e. when a retail boom is expected in a region), though your
commercial real estate investment strategy was devised around purchasing vacant
land, you might find it more profitable to buy a property such as a strip mall
or small plaza that you can lease to retailers or a property that you can
convert into a warehouse for the purpose of renting to small businesses.
So
in a nutshell, commercial real estate presents a veritable plethora of
investing
opportunities, you just need to recognize them and go for it.
Contact us
4867 Islington Ave
Toronto
Ontario
M8V 3B6
Canada
416-252-9361
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