Why Invest In Commercial Property?
Why invest in commercial property? It is known for being a stable investment. Commercial properties are also less likely to be affected by changes in the market or economy than other types of investments, such as residential property, stocks or bonds. This means that your investment is more likely to hold its value over time. In addition, commercial property offers a great return on investment.
In our latest podcast, we talk to Revolve Commercial client, Shane Harrison about his investment journey, what he’s learnt, and how he’s benefited from investing in commercial property with Revolve Commercial.
Revolve Commercial is the number one destination for people who want to work with a commercial real estate buying agency. We make property investment easy and hassle-free because we give our clients a priceless foundation of knowledge from which they can build their portfolio. And we don’t stop at education. Contact us today.
Buying Commercial Property vs. Residential: Our Perspective
One question we hear often is whether you’re better off buying commercial property vs. residential property.
Because businesses are always looking for new premises, there is a high demand for commercial property, which can drive up prices. This means that you could see a healthy return on your investment if you decide to sell in the future. Finally, investing in commercial property can help you to diversify your portfolio. This is because commercial property tends to perform differently than other asset classes. By including commercial property in your portfolio, you can reduce your overall risk and give yourself a better chance of achieving your financial goals.
Buying Commercial Property vs. Residential
So, should you buy residential or commercial? Buying commercial property vs. residential isn’t always a cut-and-dry choice — it depends on you, your goals, the amount of capital you have available, and what you’re going to be most passionate about as an investor.
That said, there are some pros and cons to consider.
For one, residential investing often involves a bit more day-to-day oversight and management. You might often find yourself dealing with calls about repairs, help with minor issues, and other requests that can quickly add up and occupy a great deal of your time (and resources).
In commercial investing, the distribution of risk and time investment is often more evenly spread between property owners and tenants. Commercial tenants tend to be more proactive about handling issues that come up, rather than dropping them right at your door.
There are also the classic pros of commercial investing, including faster appreciation and the potential for higher total return on investment. That said, commercial loans can require a bigger up-front investment than residential loans.
Weighing all of these factors will help you make the best decision for your circumstances.
How to Invest in Commercial Property
Investing in commercial property can be a great way to earn passive income and build long-term wealth. But it’s important to do your research and understand the risks before making any investment.
Here are a few things to keep in mind when considering how to invest in commercial property:
1. Location is key:
Look for areas with strong economic growth potential and good infrastructure.
2. Research the local market:
Know what kind of property is in demand and how much you can expect to pay for it.
3. Have a solid plan for how you’ll finance the purchase:
Commercial loans typically have higher interest rates than residential loans, so it’s important to compare rates and terms from multiple lenders before deciding on a loan.
4. Hire a reputable property management company:
This will help you keep your property well-maintained and minimise vacancy rates.
The best tip? Choose a commercial property buyers agent like Revolve Commercial who not only knows how to invest in commercial property successfully but is committed to educating and mentoring you every step of the way so that you become an informed and empowered investor. Contact us today and take your first step towards financial freedom.
Why Invest in Commercial Property with Revolve Commercial?
- Commercial properties tend to appreciate at a higher rate than residential properties, providing a higher return on investment.
- Commercial tenants are usually more stable and longer-term than residential tenants, providing a steadier income stream.
- Commercial properties can be leased for a variety of uses, giving investors greater flexibility in terms of rent and tenants.
- Commercial landlords have more control over their property than residential landlords, allowing them to better manage maintenance and repairs.
Overall, investing in commercial property can be a great way to build wealth and generate income — and at Revolve Commercial, we’re ready to be your mentor and supporter every step of the way.
Contact us today to begin your commercial investment journey and live the lifestyle you’ve always dreamed of.