Commercial & Industrial Real Estate: Big Profit
Real estate is often termed ‘the safest investment avenue’, explains Rainer Stenzhorn of In2assets, the commercial and Industrial property marketing company.
Real estate is often termed ‘the safest investment avenue’, explains Rainer Stenzhorn of In2assets, the commercial and Industrial property marketing company. In fact, real estate investments done with proper evaluation of the property, and by establishing its true value, can lead to extremely good profits. This is one reason why some people pursue real estate investment as their full-time job and one can regard them as investors. The public discussions about real estate are generally focused towards residential real estate; commercial and industrial real estate seems to take a back seat. However, commercial real estate in many ways is the better option for investing in real estate if you understand your game plan.
Commercial and Industrial real estate includes a lot of different types of properties. Most people relate commercial real estate with only office buildings or warehouses and industrial units. However, that is not all that you can find under commercial real estate. There is much more to commercial and Industrial real estate including medical centers, retail blocks, mini-factories, industrial business parks, hospitality and restaurants and all are good examples of commercial real estate. Even residential properties like apartment blocks, or any property that consists of more than four residential units, is considered commercial real estate. In fact, even if a block of flats consists of residential units, it is regarded as commercial because it is used to generate a rental income stream which is regarded as a commercial business activity.
So, is commercial real estate really profitable? Well, if it wasn’t profitable, I wouldn’t be writing about commercial real estate at all. Without question commercial real estate is profitable. The only thing with commercial real estate is that recognising the opportunity can be a bit more difficult, compared to residential real estate. But commercial real estate profits can be very rewarding, and in fact, much larger 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 letting purposes. 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, you should start evaluating the potential for appreciation in the prices of commercial real estate, and then go for it quickly and find the good deal.
Before you get the ball rolling it is important that you do your homework first.
In conclusion commercial real estate presents a whole plethora of investment opportunities, and you just need to grab it, ends Stenzhorn.