Why should you invest in commercial Real Estate?

Investing in commercial real estate is like investing in a piece of the commerce and business activity that drives the economic engine of the nation. When it comes to investing commercial real estate stands a notch higher amongst the other choices as Commercial real estate investments do not fluctuate with the same volatility as the stock market.  Here are some reasons as to why should you invest in commercial Real Estate?

  1. Regular income stream

Commercial Real Estate Investments offer a regular income stream which is significantly higher than typical stock dividend yields as the assets are generally secured by leases.

  1. Appreciation of Asset Value

There is excellent appreciation in value that meets and exceeds other investment types for commercial Real Estate Investments.  With proactive management like making cost-effective improvements to the property that improves the usability and desirability of the asset, properties generally can go up in value. Also external factors like supply and demand imbalances also increase the value.

  1. Accumulate Equity

The ability to place debt on the asset which is several times the original equity is another important characteristic of commercial real estate investing which works to your advantage. As the loans are paid down this allows you to buy more assets with less money and significantly magnify your equity.

  1. A superior Hedge against Inflation

As shown by studies conducted, commercial real estate investments have the highest correlation to inflation when compared to other asset classes like shares & corporate bonds.  In fact, owning commercial real estate acts as a hedge against inflation.  When inflation occurs, the price of real estate will also rise.

  1. Security Advantage

Commercial Real Estate is a hard asset with meaningful intrinsic value. The property’s land as well as the structure itself has value. By choosing the location and asset quality wisely, investors can benefit from the asset which has the potential to earn income regardless of what happens to the existing tenant(s).

  1. Tax Benefits

As the owner of commercial real estate, mortgage interest and depreciation deductions can shield a large portion of your income stream.

  1. Pride of Ownership

The pride of ownership factor which comes with owning commercial Real Estate is one of the highest among all asset classes. There is great joy and pleasure in knowing you own an income producing property.

Now that you know the reasons for why should you invest in commercial Real Estate? Do not hesitate! Start investing now!

 

Contact Prisunic Builders to build your money spinning real estate investment!

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