There are many reasons why you might be thinking about buying a commercial property (or even more than one). It could be that you need somewhere to run your business from, and you feel that owning a property is the best thing to do. It could be that you want to make some additional money and rent it out and use it as an investment. No matter what your reason, there are certainly benefits to this idea. Read on to find out what they are so you can make up your mind about whether or not buying commercial property is something that makes sense for you right now.
Steady Cash Flow
If you were to own some kind of commercial property, such as an office building, retail space, or a warehouse, for example, you can lease this out to a variety of businesses. The bigger the building, the more businesses can use it at once.
This means that you’ll be receiving a steady cash flow from the rental income you get from these properties. This is money you can expect every month, and you can use it to create business forecasts and plans for any other ventures you might have. Knowing you have this regular income coming in, and that it will be there for many years, is great for your peace of mind and ability to make future plans.
It’s true that there can be issues and that sometimes tenants can’t or won’t pay, and you need to ensure you set aside money for maintenance issues, but if you have more than one property, you can spread the risk, and ensure you have some cash coming in all the time.
You might wonder why you wouldn’t just buy domestic homes to rent out if you are looking at ways to make money from property; why choose commercial properties instead? The fact is that diversifying your portfolio is a good idea, and having a mix of the two types of property can work well.
However, if you can only pick one type to start with, commercial is a good option because it tends to offer higher returns than a domestic property would. Not only can you charge a higher rent, but the property will usually appreciate more quickly. You can also tax advantage of plenty of tax incentives, making commercial property a lot more lucrative overall. The key is to choose the right property, and if you see one that works for you, make sure you find out how you can get it. Even if it’s hard to fund private money lenders could be helpful, so make sure you investigate all avenues.
You’ll Have Control
As we mentioned above, it might be that you don’t want to rent out the building, but instead use it for your own business. So why buy something when you can rent from a commercial landlord?
The reason is simple; you’ll have control over that building if you buy it. That means you can change whatever you need to change to make it ideal for your specific business. Or you can use some of the building and rent out the rest, giving you the best of both worlds. You can also choose to sell it at a time that suits you, helping you and your business grow.