Everyone knows the most obvious incentive for investing in commercial real estate, whether looking to flip the property in a fast resale market or lease it out to commercial tenants, there’s a very real potential to reap in high profits. There are at least four more reasons that should also be considered.
The Prestige Of Ownership
Commercial tenants come and go but the property’s owner is left standing. Taking ownership of a commercial property triggers the assumption that you’re doing quite well for yourself. The Law of Attraction brings the respect and attention of other successful business owners and investors. Before long, you’re likely to find yourself invited to join various civic and charitable organizations. You might even find yourself occupying a seat as a board member of a few of them. You’re in a league of successful entrepreneurs who can open even more doors of opportunity for you.
The Security Of A Solid Foundation
Life is full of risks that can make the most capable individuals feel insecure. Jobs can suddenly end, community businesses can close their doors, the stock market can turn south and inflation can rear its ugly head. Regardless of any of those scenarios, the commercial property that you own continues to generate an income as it increases in value. Money-earning potential is right in front of you. You’ll always have the options to promote tenancy, occupy part or all of your property with your own business or refinance the property for some immediate cash flow.
Long-Term Retirement Plan
There’s no guarantee that Social Security and other retirement programs administered by the government will stay solvent and provide the intended support necessary in later years. Even pension funds are no longer guaranteed as corporations go bankrupt, consolidate, move abroad or simply restructure to the detriment of the employees long-term benefits. The best calculated retirement plans can go up in smoke with very little notice; too short notice to do anything significant to stop the harsh impact it will have.
Investing in commercial real estate is an investment in your future. It’s the property block for your retirement. You’re guaranteed to have commercial rental income for as long as you have ownership of the property. Rents can be adjusted to keep current with inflation. It’s a much safer investment than the stock market.
Expand Your Reach And Increase Your Profits
After securing your first commercial property and becoming comfortable with your role as a commercial landlord, you might want to consider searching for a new, similar opportunity. The benefits that you already derive from one property can be multiplied. Having more than one commercial property gives you greater financial leverage and stability. Maybe it’s time to buy some commercial land and put up your own new property.
It’s wise to consider using the first commercial investment as a springboard to reach for the next one. Imagine the income potential that exists in a well-situated successful, national franchise that your location might need. Owning one might be in your future. There’s no limit to how many commercial properties and propertys you can own or develop. The option to expand always begins with buying the first one.