Commercial property can provide stable, assured and measured growth as part of a balanced portfolio. Unlike residential property, the dividends from commercial property would be usually quite high, as it is meant for commercial purpose. There are a lot of benefits in investing in commercial property.
The benefits of a commercial property:
A Significant Asset Class.
The commercial property market is worth over £450 billion in the UK alone and i am sure you can imagine what it is like in other developed and much bigger countries.
Portfolio Diversification.
Investing in commercial property represents a major diversification for your portfolio. Its volatility is very low in comparison to stock market investments and there is no correlation between the performance of commercial property and the stock market.
Predictable Returns.
Because of its low volatility, the returns from commercial property funds are more predictable and stable.
Record Of Healthy Growth.
Over the short, medium and long term, commercial property has outperformed the stock and bond market.
However, before investing in commercial property, you must also be aware of the risk factors also. Just like any other investment, commercial property has got its risks, but with a little bit of careful thought and planning, you can simply overtake those risk factors.
There is less volatility in commercial property market, so the returns are sure, but there is also less liquidity in market demand. Once you have a good tenant, they’re usually there for a reasonable duration, but the problem is that for a range of commercial property; up to medium sized premises, the selection is wide and varied with new developments springing up monthly. But there is no need to panic, as the effects of these risk factors are considerably low.
If you are a big investor looking for huge returns, the best of both worlds can be obtained by investing in large government or commercial institutional properties that hold leases for 15 years or more. Here you have the combination of assured tenancy, stable yield growth and high occupancy. This in turn maintains the capital value of the property itself. If you’re convinced, then now would be the time to get that cheque book out and invest your $50 million or $100 million. If, like most private investors, that’s a little beyond your current scope, then the optimum approach is to consider investing into a commercial property fund.
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Help answer the question about commercial property
How do I list my commercial property on Yahoo?How do I list my commercial property on Yahoo?
I see how to list my residential property, but not my commercial property.
The city of Dallas will have a property map showing the zoning for all properties in the city. You can give them a particular address and they will give you the zoning guidelines for that property.
The National Association of REALTORS (NAR) has a website with all the REALTORS and if they have been the subject of any indiscretions. They won't have any public listing of income ranking etc. because that is against privacy laws.
how did the Assessor come to assess the garage as "commercial". They would have had to have some reason. Did you ever claim the garage as a deduction on your income taxes for business purposes. We need more info from you. The Assessor wouldn't just out of the blue claim a garage as commercial, unless they had a good reason.
Yes you should refinance if you have the income to support it. It sounds like a good plan, good luck.
On the website http://www.findacareerhere.com there is a salary calculator that tells you salary and also gives you a job description. Hope this helps.
Properties on Yahoo are normally take from other places/sites. If you list the property with a brokerage/company it should go onto local the local MLS, sites local real estate sites, REALTOR.com and then will show on other sites like yahoo, msn, homes etc. Sometimes when you list FSBO (for sale by owner) and put it on certain FSBO websites it will also post on Yahoo.
My company specializes in providing the SmartChoice Commercial Loan Program. What I feel makes it the best type of loan for business owners like yourself looking to buy real estate for their businesses, is that with it you will have to put as little as 10% down to buy your property making it the least expensive capital out there. We also provide below-market fixed interest rates and terms of up to 25 years.
It’s a good idea to put down as little cash as possible for your commercial property, and there are a couple of reasons for this. First, you free up more capital that can be re-invested in your business. Second, this is a long-term investment in your commercial property. You’re probably counting on this as a retirement vehicle (at least, you should, if you’re not already).
You can get a loan, but a commercial one, not residential.
First things first.
You are already paying all of the interest, so any additional payments would be principal reductions, which offer no tax benefit to you.
Unless you are a real estate licensee, your rental business constitutes passive income, and you are limited to a maximum of $3,000 in deductions against earned income. All passive income sources are aggregated, so you can deduct a maximum of $3,000 per year, regardless the number of different businesses or properties or activities that count as passive income.
Additional losses may be carried back up to three years or forward up to seven years, but are lost forever after that.
Paying down principal is probably not in your best financial interest, as it will lower your rate of return on your investments. See a tax planner or financial planner to find ways to maximize your investment returns on an after-tax basis.
I would recommend that you use the extra money to fund a tax-deferred retirement vehicle, rather than reducing principal. If set-up properly, you can use your retirement account as a business partner for your real estate investing and gain a whole host of tax benefits. Again, see a professional in your area.
Good luck to you!
i would go with a conventional loan only because you don`t know what the market will be like in 2-5 years