Is investing in commercial real estate really such a wise decision?
Many people who are new to the industry of real estate investing often choose to stick with residential investments, but a growing number of investors are choosing to jump into commercial real estate investments right off the bat. Here are just a few reasons why commercial properties can be such a good decision for investing in real estate:
- Commercial real estate values change on a regular basis, and this inconsistency may seem like a risk at first. However, it’s important to realize that changing market values can actually be beneficial for investors — especially if you’re able to get in the market before values go up! It also means that even if you have lean years, you’re likely to experience healthier years later on.
- Commercial property investments are also a great way to invest extra capital because you can find success no matter where you live or where you invest. Sure, a major city like New York or Los Angeles will have the highest ROI on commercial investments, but there’s also a lot of risk involved with those investments and there’s a lot of competition. If this competition is what you’re looking for while investing in real estate, then you’re all set! If you’re looking for a more low-key investment, there are tons of commercial property opportunities outside of those major cities.
- There’s also one major advantage of commercial real estate investing over residential property investing: you don’t have to manage as many tenants. Many commercial property investors find that it’s easier to control their work schedules, find a work-life balance, and maintain proper care of their properties simply because they aren’t dealing with so many tenants.
Commercial investments aren’t the best decision for everyone who’s interested with investing in real estate, but it might just be the perfect industry for you!