Ever find yourself asking “Should I Invest in commercial real estate?”
Well, we have the answer, YES of course.
Commercial real estate has been a reliable investment regardless of the market cycles. Even despite the recent turmoil caused by COVID commercial real estate has shown its resilience. This type of investment will be a positive addition to anyone’s investment portfolio.
Here is a list of the top 5 reasons you might want to consider commercial real estate as a top choice for your investments.
- Strong stable cash flow. Like your stock distributions commercial real estate is structured to deliver regular dividends to the investors. unlike stock distributions the return is usually greater and more stable.
- Diversification of your portfolio. this will protect you against losses if one of your investment classes underperforms or there’s instability in the stock market your commercial real estate investment will likely be unaffected. There is the added diversification in commercial real estate with the multiple property types that can be chosen from. Making an even a broader more diversified investment portfolio.
- Real estate is tangible and a hard asset. Unlike your investment in the stock market which can be one value today and a completely different value the next day real estate tends to maintain its value overtime. even though property values may rise and fall the tangible asset does not go anywhere.
- Tax Advantages. Owning real estate provides you tax advantages and deductions. Unlike stocks and bonds where the investor must put aside some of their income to pay the capital gains tax and less the investment as part of their retirement account. However, with commercial real estate capital gains may be reduced or avoided altogether (remember to consult with your CPA or accountant).
- Co investing/ Sponsorship. First time investors or average investors generally don’t have the expertise to buy, sell, operate, and manage commercial properties. In today’s investment market most investors aren’t doing it on their own. With sponsorships and Co investing opportunities it is easier than ever to jump into the commercial real estate investment market.
To wrap it up there is a great opportunity for commercial real estate investors. The tangible asset yields robust and steady cash flows and represents diversification in anyone’s investment portfolio. The favorable tax benefits and buffers to the instability of the economy make commercial real estate a sound investment.
Oh, by the way. If you know someone who is looking to rent, sell or buy a property, please call or email us with their information and we’ll take good care of them!
As always, thank you for your business and continued support!