The real estate market is constantly fluctuating, like the stock market, and some real estate investors are considering making the switch from residential real estate to commercial real estate. Investing in real estate is often a much more secure investment than the stock market, where your retirement savings are subject to the market’s whims. Here are some of the best reasons why you should consider switching from investing in residential real estate to investing in commercial real estate.
Commercial Real Estate Gives A Bigger Return On Investment
Commercial real estate properties are known for generating large amounts of yearly income annually and more reliably. For many people, it’s easier to get the money together to purchase a commercial real estate property than it is to purchase residential real estate properties. Why is that the case? Residential real estate investors are required to get their capital from financing and private lenders. Commercial real estate investors can pool capital and have access to more financing to make the purchase.
Commercial Real Estate Can Be A Safer Bet
While nothing is promised and certain, many commercial real estate properties essentially guarantee a good return on investment. Certain types of commercial properties are safer bets. One example of this is the self-storage industry. The self-storage industry almost never experiences downtime and there are plenty of opportunities to purchase or invest in one. In fact, drops in the stock market and housing market can actually increase revenues in the self-storage industry as people downsize and store their property. As long as you are investing in commercial real estate intelligently, it can be a much safer investment than residential real estate.
Commercial Real Estate Can Increase In Value
While residential real estate can increase in value over time, commercial real estate can increase in value relatively quickly. Residential real estate property values are based on the average of comps in the surrounding area. Commercial real estate properties, in contrast, are valued based on the revenue that the property generates. As a result, the higher that your commercial property’s revenue is, the higher that the value of your commercial real estate is.
Trust The Professionals At Clagett Enterprises For Your Real Estate Needs
If you’re looking for the perfect realtor for your property or to assist during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistant selling your home and getting the best possible price, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, Pinterest, and Google+.