Commercial property is a great investment.
If so, here are 7 benefits of commercial property…
- It can create a second source of income
- It offers a long-term appreciation
- You can improve or add to it
- It’s more affordable than residential property
- Investment property can be super tax benefits
- Low risk
- Commercial property is more reliable
Commercial property creates a second source of income
But what about your commercial rent?
It’s usually a good idea to consider the possibility of increasing your rental income through improvements, such as installing new fixtures or adding new areas to the property.
If you’ve got a tenant who wants to make changes or add features based on their own needs, that’s great news.
This can mean more money in your pocket every month—and it could also lead to a higher asking price when it comes time for sale.
It offers a long-term appreciation
Commercial property is a long-term investment.
While a residential property may appreciate in value over time, commercial properties can increase in value even more quickly and consistently.
The fact that your investment has earned you money from day one means you’re earning interest on top of what it costs to purchase the building or land in the first place.
You can improve or add to it
You might be thinking…
“I’ve already got a property that’s worth 1 million Naira, so why would I want to invest in another one?
Well, there are plenty of reasons for investing in commercial property and one of them is the fact that you’ll be able to make improvements on your existing investment.
If you’re looking for an opportunity where you could potentially increase the value of your current asset, then investing in commercial property could be perfect for you.
You may also be wondering what kind of return on investment (ROI) we’re talking about when we say “improvements.”
It means if you rent out a space for 100,000 Niara monthly.
By doing so you can increase your monthly income by 30% over time.
Which isn’t too shabby either.
Commercial property is more affordable than residential property
- You can buy commercial properties with a smaller down payment.
- Investors can get better returns on their investments when they’re buying commercial real estate.
- Commercial real estate is more affordable for tenants because it costs less to maintain and repair the building than it would be to build something new from scratch (even if it was just one floor).
Investment properties can be a super tax benefit
- Losses: If there are any losses associated with a commercial property investment opportunity that may have been incurred during its acquisition or other business activities—for example, if an investor bought a building as an investment but decided not to use it for their own purposes—that loss can also be used against other types of income such as capital gains or ordinary income from other sources like wages/salary. This allows investors to maximize their tax deductions without having much impact on overall cash flow since most expenses related directly to acquiring these assets should already come out-of-pocket anyway – such as closing costs. In fact, many times this happens automatically since most loans include provisions made specifically so that if certain events occurred such as foreclosure(or even just being unable) then those funds could revert back into another account where they would remain accessible until needed again later down line…
Risk is lower with commercial property
Commercial property is less risky than residential property because it’s less subject to fluctuations in the economy and interest rates.
It also has fewer risks associated with changes in the housing market, which makes it a better investment choice for investors who want to make a profit from capital appreciation(or loss).
This can be done through rent or the sale of your commercial property at some point in time.
Commercial tenants are usually more reliable
If you’re thinking of investing in commercial property, it is important that you consider the tenants who will be occupying your building.
Most tenants in commercial properties are not like your average homebuyer or renter.
They are typically more financially stable and mature individuals who can afford to pay their rent on time and keep up with maintenance costs.
This means that they are unlikely to bail out just because something goes wrong at the property—a very common occurrence with residential renters!
Commercial property is a great investment.
Commercial property is a great investment. It can create a second source of income, offer long-term appreciation and make it easier to add value to your property.
Commercial properties are more affordable than residential properties because they typically require less maintenance, making them more appealing for investors who want to take advantage of the super tax benefits that come with investing in commercial real estate.
If you are considering investing in commercial property, this article can help you determine if it is right for your needs.
Commercial property has many advantages over a residential property, such as the ability to generate a second income stream while paying lower taxes and riskier investments.
It’s important to know what type of investment will work best for your situation so don’t hesitate in contacting us today!