If you have enough cash lying around, it is worth acting soon and adding commercial property to your investment portfolio in 2021. Why? According to Jacob Kupp, the commercial property market is a ‘mixed bag’ as we find our way out of the other end of the pandemic which has had detrimental effects on several industries.
However, things are now beginning to pick up and those who have made the right investments will soon be able to reap the benefits of having done so.
Commercial property investment is a safe and lucrative option, as long as you’re buying the property in the right area for the right price as long as you are smart about your budget and location.
The main benefit of an investment in property is that there is significantly less variance compared to stocks and bonds. Property investment minimizes risk because you can hold onto it for longer- even in the case of your property decreasing in market value. As long as you have the property, you can still build equity.
Why Is Commercial Property a Good Investment?
There are a few great reasons that you should add commercial property to your investment portfolio, and they are:
- the potential to increase in value significantly over time;
- they come with excellent tax benefits;
- they act as a great revenue stream when rented out to businesses;
- they are likely to increase in value over time.
How to Start Investing in Commercial Property
You’ll need a great credit rating in order to secure a loan big enough to buy a commercial property. So you should start by clearing your debts as soon as possible. The fewer debts you have, the more likely you are to secure the loan you need.
After clearing your debts, you can start putting money aside and saving money for a deposit. Soon enough you’ll have set enough aside to buy your first property.
Then you can do some market research to see what is available to purchase, market trends, and additionally the viability of a successful business in the area. Most people who invest in commercial property will do so in order to rent it out to businesses–so the success of businesses in that particular geographical area is another important consideration.
Then get yourself a trustworthy agent who will advise on some of these areas.
Hire an Attorney
Attorneys that specialize in commercial real estate are essential if you want to be successful in your investment. The reason for this is that not only will they review and negotiate sale and purchase agreements on your behalf. They may also check to ensure that there are no restrictions on zoning, land use, or environmental issues.
They are also available to help you to negotiate any loan agreements you may need.
Use a Commercial Management Company
Property managers will help you to walk through and assist you in the same way any other contractor would. They can help point out the pros and cons for tenants who could be occupying your property.