Why Should Invest in Commercial Properties Instead of Residential Properties - PowerPoint PPT Presentation

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Why Should Invest in Commercial Properties Instead of Residential Properties

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There is a lot of dilemma among the people regarding investing in commercial or residential property. There is a lot of difference between commercial and residential properties. You should have a basic understanding of the functioning of both these properties and the reason behind commercial property having an advantage over residential property. The will give you details on why you should invest in commercial properties instead of residential properties. – PowerPoint PPT presentation

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Title: Why Should Invest in Commercial Properties Instead of Residential Properties


1
Why Should Invest in Commercial Properties
Instead of Residential Properties?
2
Commercial and residential real estate are very
different from each other and it is important to
learn about them before investing in a property.
3
The residential properties are available in a
plenty which can be bought at a below market
price and are easy to manage.
4
Investing in a commercial property is regarded
as a tricky business but involves an opportunity
to make a lot of profit.
5
Here are just some of the prime reasons why more
property investors are choosing commercial
property instead of residential.
  • Better tenants
  • Zero furnishing cost
  • Increased asset value
  • Consistent returns

6
Better tenants
7
Depending on the location of the property,
normally the tenants are banks, corporate houses
or retail chains.
8
Having such tenants is a good deal as there is
never a delay in the rent collection and even
maintenance problems are minimized.
9
When you have a quality tenant, it attracts more
such tenants in the vicinity and helps to ensure
best future rental yields.
10
Zero furnishing cost
11
A major advantage of investing in commercial
properties over residential is that you don't
have to spend money on the furnishing of the
building.
12
Generally, the corporate houses or the retail
chains wish to furnish the property as per their
need and requirements.
13
The main cause is branding and the businesses
want their outlets should be similar in
appearance at all the places.
14
Increased asset value
15
In case of excellent value appreciation rates,
commercial real estate investments are always way
above the other types of investments.
16
When business flourishes in an area, then the
location witnesses new developments bringing in
more customers for investments.
17
The developments not only produce more profit
from the rents but also the owners can earn a
good sum from reselling the property in the
future.
18
Consistent returns
19
The lease agreements for commercial property is
always signed for long terms like 5 or 10 years
and the owner is assured of consistent returns
unlike residential property.
20
The lease agreement also has a clause of annual
increase irrespective of the market conditions
which means a more reliable source of income for
the owner.
21
Commercial tenants often take on many of the
costs like insurance and maintenance that
landlords would be traditionally expected to
cover in the residential market.
22
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