Some points to know about commercial property investment

Looking for an investment property but not sure about exact property, this article will help in choosing the best option for you. There are two types of real estate investment options, Residential Property and Commercial Property. According to expert’s point of view, Commercial property is best investment option. In this article I am going to tell you some things about commercial property and why this is important?

What is commercial property?

In simple word, it is everything which is not residential or vacant property. It includes three classes: official, industrial and retail. Where industrial includes factories and ware houses and retail includes shops and small groceries.

Rental Returns

According to the circumstances and locality, people get rent of their properties. But at one hand where people get 4% or 5% yearly from their residential property as rental but at other hand people can get better return from their commercial property depending on market condition, locality and quality of building. But always before the investment you should choose such type of property which is its initial stage of development like property in NCR, Property in Noida and etc.

Capital Growth

Residential property does not ever give high return as commercial property. The price of residential property will increase according to the development of area and that will end at one stage but the price of commercial property always increases. Taking an example of developing location like Yamuna Expressway, if you are investing in Commercial Property In Yamuna Expressway, this will be surely fruitful for you because when market is fully developed the demand of commercial property increases.

Outgoings

This is the very best factor which makes great difference between both types of properties and shows the benefits of investing in Commercial property. In commercial property entire outgoings like maintenance charge, council rate and property management fee are paid by the tenants. In this way everything which tenant pays you is your saving on the other hand all these charges are paid by the owner in residential property like.

These are some facts which investor should think about before investment but I am going to tell you some drawbacks of investment in commercial property. If your tenant leaves your residence it is very easy to find another tenant for your residence but in commercial property, owner has to wait long for another tenant. So you should keep ready some amount to cover your mortgage if property is empty longer.

Article Source :- Tips to by Commercial Property