Purchasing commercial real estate properties can be one of the better options to invest your hard earned money. These kinds of premises are good business venture since commercial spaces provide the investor a stable business and furthermore, the commercial space can become a very important asset for them in the long run.
But before you purchase anything, it is good to think hundred times about the pros and cons of owning a commercial property. Before you spend your savings it is nice to think carefully about the possibilities of having such kind of real estate asset.
Below are some of the known advantages of buying commercial spaces, check them out;
Generate additional income ? The most obvious advantage of owning a commercial real estate property is that you can easily generate a good profit out of it most especially if you will start to lease out the property to potential renters. But make sure that you maintain the property well to attract potential renters to lease the commercial space. Remember that most tenants would like to rent a well maintained property because they don?t like to deal with maintenance issues anymore. They are more willing to focus on how to take care of their business matters and would prefer to buy a well maintained property than those that are not properly maintained.
Tax holidays ? Another advantage of owning a commercial space is that investors are allowed to apply for tax holidays depending on how much commercial spaces they own.
On the other hand, there are some disadvantages of buying commercial properties, and these are the following;
Prone to increase in interest rates ? This is one of the known disadvantages of owning a commercial real estate property. Since commercial mortgages would usually last for 15 years or more, the investor is liable to pay the interest rates if the mortgage is not paid on time. Keep in mind that interest rates increases every month especially if you just ignore the monthly payment of your loan.
Expensive maintenance cost ? When you own a commercial space you will be tasked to maintain the entire commercial premises at your own expense. You will need to shell out a lot of money in maintaining the property. Apart from that, you are also liable for factors such as keeping the property ceiling intact, maintaining tiles on flooring, electrical wirings, fixtures and fittings, property insurance, interior and exterior paintings, decoration and security and many other things that will cost you a lot of money.
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