Commercial
real estate: The big profits
Real
estate is often termed as the safest investment avenue. In fact, real estate investments done with
proper evaluation of the property (and its true value), can lead to good
profits. This is one reason why some people pursue real estate investment as
their full time job. The talks of real
estate are generally focussed towards residential real estate; commercial
real estate seems to take a back seat. However, commercial real estate too is a good option for investing in real
estate.
Commercial
real estate includes a lot of different kinds of properties. Most people relate
commercial real estate with only office complexes or factories/ industrial
units. However, that is not all of
commercial real estate. There is more to commercial real estate. Health
care centers, retail structures and warehouse are all good examples of
commercial real estate. Even residential properties like apartments (or any
property that consists of more than four residential units) are considered
commercial real estate. In fact, such commercial real estate is much in demand.
So, is commercial real estate really
profitable? Well, if it were not profitable I would not have been writing about
commercial real estate at all. So, commercial real estate is profitable for
sure. The only thing with commercial real estate is that recognising the
opportunity is a bit difficult as compared to residential real estate. But
commercial real estate profits can be real big (in fact, much bigger than you
would expect from residential real estate of the same proportion). You could
take up commercial real estate for either reselling after appreciation or for
renting out to, say, retailers. The commercial
real estate development is in fact treated as the first sign for growth of
residential real estate. Once you know of the possibility of significant
commercial growth in the region (either due to tax breaks or whatever), you
should start evaluating the potential for appreciation in the prices of
commercial real estate and then go for it quickly (as soon as you find a good
deal). And you must really work towards getting a good deal. If you find that commercial real estate, e.g. land, is
available in big chunks which are too expensive for you to buy, you could look
at forming a small investor group (with your friends) and buy it together (and
split the profits later). In some cases e.g. when a retail boom is expected in
a region, you might find it profitable to buy a property that you can convert into
a warehouse for the purpose of renting to small businesses.
So
commercial real estate presents a whole plethora of investing opportunities,
you just need to grab it.
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