Why is Investing in Commercial Property The Best Source of Income?
Thursday, November 16, 2017, 6:00 PM | Leave Comment
Today in the fast-paced world and the constant rise in inflation, has led to things becoming expensive day by day. The money earned needs to be used wisely so that we can maintain the luxurious lifestyle.
If you want to lead a stress-free life, you must consider taking up the various side businesses or at least plan to make some investments. The best option to safeguard your money and generate profit is by investing them.
These profits are generated by a capital gain or rental income. Commercial property amounts to building given for office use, restaurants, malls, multiplex, shops, land, and housing. Once the units set for residential property exceeds the limit, they will generate taxes and money for borrowings.
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Buying A Commercial Property
A broker is involved in showcasing the commercial properties to the buyers. Further, they will send a letter to the broker, and various investors will be called in for the investment in the property.
If the investors approve of the property, a sale and purchase agreement is made between the parties. Within the time span of 30 days, a due diligence team shall inspect the property premises. Then they will decide whether the deal shall be executed or not. Once the agreement is finalized with the buyer, the commercial property will be in possession of the buyer.
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Types Of Commercial Property
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Building for Office Purpose
All the properties having a single tenant and are not that huge in space are included in the category of building used for the office.
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Industrial Property
In this category, we include all the properties that are small or big but are given out for industrial purpose. The small property should have the height of 14-16 feet and should have parking and warehouse on the same level. The more prominent industrial properties have a height of 40+ feet.
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Retail Stores
These are the spaces that include small and large areas used for selling various items including grocery stores.
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Restaurants
All the large and small places used to sell food for consumption amounts to the restaurant business.
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Multifamily
All the residential properties with more than four levels of apartments are counted as commercial property place.
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Land
The lands that are given on rent which may amount to future developments bearing income come under the arena of commercial property. It can be known for future profits and revenue.
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Miscellaneous
This one category includes all those properties that do not come under the category of residential properties. Further, these properties cannot be defined correctly as the arena of commercial property.
All in all these properties are expected to render significant income and are seen as a way of investment. Money can be earned by smart work as well. We all need to have some savings, to keep our future intact and for contingency purposes. Here, this arena of income will help us out perfectly and help us live a peaceful and well-off life.
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