Tuesday, 19 August 2014

Invest in Commercial Real Estate and Look to the Future

Do you know how rich people get rich? They don’t just put their money in the bank; they put it to work. One of the best ways to have your money generate more money is to invest. However, some investments can be fragile. Real estate investments, whether residential or commercial, are pretty stable in terms of generating income. However, if you are thinking of investing, better make it a commercial property. Here’s why.

Valued Differently
The income you can get from a piece of commercial real estate is related to how much square footage you can use. Residential properties have different income ratios, usually depending on the amenities it provides.

Less Risky
Investments have an inherent risk. However, commercial real estate investments tend to generate revenue at a constant rate and can weather tough times. An example would be a ten-room apartment complex; even if you lose nine out of ten tenants, you’re still earning.

Better Cash Flow
You get a higher income from commercial real estate due to the bigger number of tenants. Residential properties often only have one renter. If you rent out a multi-unit commercial property, you can have more tenants and bring in a lot more money.

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