Real Estate Investment - Investing In Commercial Properties - Real Estate


Real Estate Investment - Investing In Commercial Properties   by James Klobasa

in Real Estate    (submitted 2007-02-06)

Investing in commercial properties is fast becoming popular among real estate investors. These properties offer lucrative deals and this of course makes the investors evermore interested in buying these properties. As in any other type of investment, it's obviously advisable to do your research well so that the property you invest in generates you a good residual income.

What is a commercial property? Properties such as hotels, malls, retail stores, business complexes, medical centers and industrial properties are commercial properties. Any property, which is used to earn an income and make a profit, is a commercial property.

When a real estate investor invests in commercial properties, he does so with the intention of selling it to other businessmen or even renting them out. Commercial real estate is really booming because of the demand. Every other day we see a new mall being built, or maybe even a brand new industrial coming up in the heart of the city. Nowadays it seems even hotels come up overnight! One wonders where all the space is coming from! But the point is, if such properties are being developed, the demand is obviously there! It's because of this demand that investors are showing a keen interest in investing in these properties.

Apart from the demand of course, there are other advantages to investing in commercial properties. The rentals yielded from a commercial property are much better than those you would yield from a regular residential property. Real estate is where the money is, and of course the first thing you look out for when you're investing is whether it's going to be to be a profitable deal. When you invest in commercial properties, you're bound to make good money by renting out your property.

The profits made from a commercial property are obviously incomparable to any other type of property. The very word "commercial" should explain this. When you invest in residential properties, you will either sell it off once and far all and reap a good profit, or earn from your monthly rentals. However, when you invest in commercial properties, whether you sell off a piece of property or rent it out, you're bound to earn much more, because these properties are being used for businesses of some kind, and hence the worth of these properties is much more!

If you've invested in stocks and bonds, then let us tell you that investing in commercial properties is just as lucrative. While stocks and bonds are a fluctuating market, and many are wary of investing because of this flux, real estate is a more stable market. As already stated earlier, commercial properties are highly in demand and this demand is only growing. Hence, investments in this sector are also growing and if you do a proper market survey and keep the basic rules of real estate investment in mind, you're sure to get yourself a great deal!