Commercial Properties Vs Residential Properties

Commercial Properties Vs Residential Properties - What are the Benefits of Investing in the Former?

commercial properties in Surrey

Both residential and commercial properties are regarded as lucrative for investment purposes. These are regarded as safer to invest on, in an investment climate that is growing more and more unpredictable by the day. As a real estate investor, it can be confusing for you to understand which one is better to put money on. Should you invest in commercial properties in Surrey, or residential properties? Read on and find out the answer.

Ability to get higher overall returns

Traditionally, commercial properties have been regarded as a sound investment. When compared to residential real estate properties, the initial investment expenses for the building and the expenses associated with customizing the property for tenants are more. But you can get higher overall returns in case of commercial properties. Also, while dealing with clear leases and a company, some of the hassles that are related to residential tenants are not there in case of commercial properties.

Reduced expenses

There is also the ability to reduce expenses in various areas in case of commercial property for sale in Abbotsford. For example, if you are investing in a retail space, you can avoid the furnishing costs because you can be assured that the tenant will do it according to his own needs, preferences and budget. You can also get the chance to use the Triple Net Lease in which all the expenses like maintenance, building insurance and real estate taxes are borne by the agency that gets your premises on lease. Such a benefit is not available in case of residential real estate investment.

Direct pricing and favorable lease terms

Other than favorable leaving terms, you can also benefit from more direct pricing in case of commercial properties. If you invest in a residential property, you have to consider various factors - such as the emotional appeal of the same property to potential tenants. That is not the case with commercial property investment, where you can depend on the income statement for showing current lease value; and this can be compared against the cap rate of various other commercial real estate properties in the neighborhood. If you would like more information about a commercial property for sale in Abbotsford, please visit this website.

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