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Ten Benefits of Investing In Commercial Real Estate

When people decide to make substantial investments, they usually restrict themselves to residential options, or invest in stocks and bonds. While investing money in the residential real estate services or stock market is not a bad idea, you miss out on a massive opportunity ignoring the commercial property sector. Following are the top ten benefits that you can reap when you invest money in commercial properties in Canada.

Potential for Generating More Income

When you put your money in buying a property that supports only single housing, it will incur a 100% loss on income when the property gets vacated. On the contrary, in case of multiple occupancy commercial buildings, the risk of losing income is substantially lower in terms of vacancies. If one tenant leaves, there will always be some other in your commercial properties in Canada still making contribution to cover your major operating costs. Consequently, a commercial property will get you a greater return on investment (ROI) annually, compared to other options like stock dividends that generally yield anywhere from two to three percent of annual return. This range is considerably higher for commercial real estate in Vancouver. Another important tip to keep in mind is that apartment buildings and multi-housing properties usually offer lower returns relative to office spaces in the suburbs.

Incredible Appreciation Value

Investment options, such as stock, merely let you purchase or sell according to the market. On the other hand, the owners of commercial properties get the unique opportunity to invest in the renovation and improvement of their property to exponentially increase its overall value.

You only have to follow regulations and get the necessary approval from the local government to make improvements on your property. As the owner of a commercial real estate property in Vancouver, you can modernize or overhaul the whole place, restyle interior or exterior or raise rents. Inflation also plays an integral role in increasing the worth of your property.

Regular Stream of Income

In the case of stocks, you can rarely be sure when you will receive the dividends. However, commercial properties usually involve leasing that brings cash on a regular basis.

Tax Benefits

There are very few types of investment that provide you with a variety of tax benefits. Fortunately, investing in commercial properties, such as commercial real estate in Vancouver, is one of them. The two most notable benefits are deduction on mortgage interest and the deduction on depreciation.

Less Competition

The residential market has cut-throat competition. Another party can close the deal if you show even a little a bit of laziness. Things are relatively gentler in the commercial property sector.

Opportunity to Leverage

When you own a commercial real estate Vancouver, it enables you to secure a massive loan against your property. You can use this loan to purchase even more commercial buildings.

 Ability to Use in Multiple Ways

You can offer commercial real estate to residents or enterprises. This way, you can target more people, which you can’t in case of residential real estate investment.

A Proud Owner

By utilizing residential real estate services, there are a lot of people who own residential properties. But when it comes to commercial buildings, there are significantly fewer individuals who own them; you will be one of them.

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