You know you’ve started to make it in this world once you’ve begun to save enough money to put that money to work for you. Many up and comers are somewhat at a loss when this happens, though; everyone knows that you should invest your money, but fewer know exactly what that investment should be. Especially when you’ve gone from living paycheck to paycheck to having a real disposable income with which investment is possible, choosing the right thing to invest in can be extremely difficult. One option many don’t even consider is investing in commercial property, but there are some very compelling reasons that commercial investment property is an effective way to utilize your wealth properly.
Income Potential
Investing in commercial properties has a significant potential to earn large amounts of money. Commercial property will yield between 6% and 12% annual returns, sometimes more than double the returns you’ll get from investing in a single family home. Even among more volatile markets like stocks, commercial property investment has a relatively significant return on investment.
Better Interactions with Tenants
Anyone who’s ever lived in a rental situation or rented out in one knows that the relationship is fraught with issues on both sides. Residents, after all, have no choice but to live somewhere, so there is an onus of necessity on the situation in the first place, and struggling with tenants to get payment for rent can be common. In a commercial situation, the tenant is a business, and it is in that business’s interest that there be no issues with their property. It’s mutually beneficial for both parties to be courteous.
Sunlight’s the Best Disinfectant
If you rent to a family, you might walk in after years of use, and find the place a horror show. With places of business, employees and clients are in and out all the time. It’s not only in your interest for the tenant to maintain a clean and safe building, it is in their own as well. Both you and the business have interests that line up, and that leads to a good working relationship.
Keep in mind, when you own a commercial property, there is more of a time commitment than with residential properties, so it’s important that you purchase property locally. If you live around Dallas, then look for commercial investment property for sale in Dallas, TX. It could be the best financial decision you ever make. Visit Investment Club Realty for more information.
