With the market having more ups and downs than a yo-yo recently, there are still viable alternatives to your investment dollars. A recent article discusses the reasons why investing in a commercial property is still an excellent choice. While the residential real estate market has been in a slump for quite some time now, the commercial real estate market continues to thrive for a number of reasons. Real estate has always been, and still is a great long-term investment. Here are reasons why investing in a commercial property is a great choice for both tax savings and growing your bottom line.
Residential properties attract not only investors but homeowners as well and the growing trends in real estate investment tend to focus on the best ways to buy, sell and flip residential homes. For this reason, commercial properties are often overlooked, despite the unlimited potential that any location may have.
Commercial Property Appreciates Differently
Residential properties are valued based on comparable sales in the neighborhood. This influence doesn’t directly apply when placing a market value on a commercial property. Rates for commercial property sales are determined based on how revenue is generated at that particular location, and then compared to that of similar commercial properties in the area. A small increase in revenue from your newly acquired commercial investment can bump up the value of that property significantly.
On top of this, there are other factors such as the progress of the wider economy, even as far out as the national economy of the country you are investing in. This in particular is a good reason to consider investment in other countries where economic growth is high.
High Potential for Income and Returns
A sound investment in commercial property generally provides significant benefits from long-term leases, business profit and/or capital gains. Not only can you create unlimited income potential with a great business plan, but you can also create long-term security of high returns on leases which range from 3 to 10 years in length.
Depending what plans are included in your purchase of commercial property, there are many financing options that can make it easier and less time-consuming to finish the deal. Not only are there many programs available to finance commercial real estate, but lenders typically look at a different set of data, including how well the property will potentially perform, when approving a loan. It’s not just about your finances but also whether they think the property will provide a reliable return for you.
About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs in Boise, Meridian, Nampa, and the greater Treasure Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.