For as long as we can remember, owning real estate, either commercial or residential, has been associated with power, status, and wealth. However, as times started to change and we entered the technology era, people began turning to other investment options. Some of them are stocks, bonds, crypto, etc.
But, according to experts, we can safely say that real estate was and will always be one of the safest investment options in the long term. So, let that be one of the most important reasons you should invest in commercial real estate right now.
Be that as it may, we understand that you need some more reasons to invest in something as big as real estate. Here are five reasons you should invest in multifamily properties, office spaces, industrial units or even real estate properties for retail or hospitality.
Appreciation of Value
The times are tough – nobody can argue about that. But, if history teaches us anything, the real estate market always recovers from a crisis. And, once it does, its value increases. Investing in an excellent commercial real estate market can make an enormous profit! Moreover, looking back on history, we can safely say that the more we hold on to our commercial real estate, the more money we will make. Thus, is there a better reason to invest in a commercial real estate market right now?
However, let us warn you about something. To achieve an appreciation of value, you must invest in a ‘good’ property. That is, you must invest in a property in the right location that has the proper infrastructure and is easily accessible for transportation. Moreover, you will have to do market research.
For instance, if you decide to invest in property in Florida, check out the state of the Florida real estate market in 2020, 2021, and 2022. Then, check predictions. Learn as much as you can about a specific market before you invest!
Steady Cash Flow
A steady cash flow may be one of the most important reasons to invest in commercial real estate. Why? Because when you rent out your property to a certain business, you will generate a steady cash flow each month. Moreover, all the expenses of your commercial property will also be covered by the business renting out your property too!
However, if you want to receive a good amount of money each month that will cover your monthly loan payment and still provide you with some extra cash, you must ensure that the property you rent is top-notch. Besides having a great location, infrastructure, accessibility, etc., your property should also be functional and visually appealing.
And, don’t worry about having to equip the offices. You just have to pick out the furniture and call commercial movers to help you with all the transporting, heavy lifting, and assembling. Yes, pros can always jump in and are just a call away.
Numerous Tax Benefits
What tax benefits you will get depends on the state and the city you want to invest in. But, in general, all US states have some tax deductions. For instance, you will not have to pay income tax. Then, you will get a tax break for insurance, maintaining the property, depreciation, legal fees, and even mortgage interest.
However, once again, it all depends on the state. So, if you plan on investing in Florida commercial real estate, besides checking the Florida real estate market condition in the past and now, check the state’s tax laws too. Moreover, if you are a first-time investor, you should also check for some incentives – they can significantly help.
Did you know that to invest in commercial real estate, you can use just a small amount of your own money and borrow the rest? For instance, if you save money for a down payment, you can get a loan from the bank to cover buying the rest of the commercial property. So, if you want to invest in something as big as this, you will not have to risk your life savings and emergency funds. You will have to come up with the down payment (usually 15% of the total purchase price), and your bank will do the rest.
Moreover, this also means that you will be the instant and complete property owner even though you invested only a small portion of the money. And, it means that you can instantly do that property what you want.
So, if you’re going to use it for your own business – you can call Miami Movers for Less and relocate immediately.
Having a Tangible Asset
One of the last but certainly not the least important reason to invest in commercial real estate right now is tangibility. Tangible assets, such as commercial real estate properties, can be further leveraged. Thus, enabling you to capitalize on other revenue streams.
Moreover, while doing all of this, you can enjoy capital appreciation too! You can also enjoy the benefits of hard money loans as tangible assets are secure and always in value, which is something that can’t be said about cryptocurrencies or stocks, for example.