In today’s market many are looking for smart investments, investments that will enable them to reap long term benefits.
If you are looking to make a wise investment, you should consider commercial real estate. What though do you need to know before buying commercial real estate properties?
- Commercial real estate primarily refers to retail buildings, office buildings, warehouses, industrial buildings, apartment buildings, or buildings used for mixed purposes.
The market for global property investment has grown to over $788 billion and promises to continue growing. Now is the time to get your cut of the action.
The number one city for real estate investment is New York City, accounting for 7% of the global market. That being said, every city will have a demand for commercial real estate for lease.
Commercial real estate assets can be a truly savvy investment. Commercial properties will generally provide an annual return off of the purchase price from between 6% – 12%, depending on the area in which you live.
However there is a need for caution, the commercial real estate investing market can be a bit unstable at times, fluctuating significantly approximately once every five – seven years. In the long run though, investing in real estate is by and large a prudent choice.
It is generally expected by commercial property lenders to give 30% down before loans are accepted. You can reasonably expect banks to lend from 60% – 70% of the property value for commercial real estate.
The Royal Institution of Chartered Surveyors recently conducted a commercial market survey that demonstrates the 10th consecutive quarterly acceleration of demand for commercial properties, with 46% more respondents seeing greater interest.
Still not sure where to begin? Real estate investment firms can offer invaluable assistance when you are considering how to buy commercial real estate, what properties, and which areas will make the most prudent investments.
If you are looking for a way to diversify, if you are looking to bring in some extra money, you should consult with someone that can help you make substantial real estate investment strategies.
If you want to get in on this promising investment opportunity act fast. Don?t allow yourself to miss out on commercial real estate properties available near you.