Commercial Property: A Great Investment For Small Businesses
Category Advice
Owning commercial property can be a highly lucrative investment for entrepreneurs looking to diversify their investment portfolio. While commercial property can provide business owners with excellent returns, this is also dependant on the type of property and area in which the entrepreneur invests in. Investing in commercial property not only provides business owners with a premises from which to conduct their business operations but also provides numerous benefits and opportunities:
1. Freedom
Small business owners who choose to own their commercial premises can enjoy numerous benefits, such as: no increases in monthly rentals, no lease renewals and generating extra income by leasing out sections of the property. Furthermore, owners of the property have the freedom to renovate, expand and modify their commercial buildings to suit their businesses needs. If your business is growing and you require more space for new employees, you have the freedom to enlarge your premises.
2. High Returns
Buy to let property ensures a high return on investment as property owners can profit from rental income as well as capital returns as the value of the building appreciates. A popular way to start is by purchasing a large commercial property for your business premises and leasing out sections of the property to other businesses. This way, you gain rental income, capital returns and a property for your own business operations.
3. Flexible Financing
Entrepreneurs who own commercial property have the flexibility to refinance their properties, allowing them the freedom to invest excess funds into assets like: machinery as well as other business expenses.
4. Longer Contracts
Unlike residential property, commercial property usually requires longer terms and conditions in the lease contracts. This provides more certainty of a long term income stream to landlords. In addition to this, commercial properties usually constitute a large number of tenants, providing more security due to the spread of risk amongst tenants.
5. Expand Your Portfolio
Investing in commercial property is the best way to diversify your investment portfolio as it is typically a low risk investment as it is less volatile in comparison to other ownership investments such as stocks.
Purchasing a commercial property is a large financial decision however, it is also a great asset flourishing with financial benefits. If you are interested in investing in a commercial building, browse our listings for a broad range of commercial properties.
Author: Dormehl Property Group
