Advantages of Investing in Commercial Property


One may have limited finance for investing in commercial property. There’s a belief that investing in commercial property is only for businesses or wealthy people. This thought comes from that commercial property investment is not that cheap. There’s always a wide range of options for commercial property to choose such as shops, land, office, etc. which require different budget for investment. These are some of the advantages to invest in commercial properties.

1. Offer on rent for better returns–You can always expect a better return on an average of 10% when you rent out your property. All depends on the type of property, and the location to get a good return.

2. Deal with tenants –Tenants include banks, retail shops, business houses, etc. If the tenants prefer the locality of the propertythen the chances of getting higher returns is always possible.

3. Regular returns – Unlike residential property, commercial property has a lease agreement for a period of 5 years. Therefore, you can expect regular and consistent returns for a few years. Also, the lease agreement for the commercial property goes up depending on the market conditions.

4. Zero furnishing cost – Furnishing cost is nil or low for a commercial property, and this is the biggest advantage. You can always rent it raw to the tenants who will do all the necessary furnishing depending on their needs.

Always consult a good property lawyer if you’re looking to invest on buying a commercial property.