The Biggest Benefits of Owner-Occupied Commercial Properties
One of the most attractive aspects of being a real estate professional is the many facets of the industry and the numerous opportunities to make a lucrative career. Even when market conditions are poor, savvy investors can be successful. One type of real estate business you should consider is owner-occupied investing. In particular, investing in commercial properties that are owner occupied can pay big dividends for you and start you on the road to a rewarding career. The following are some ways in which this type of investment can be right for you.
When you purchase a commercial property and rent it out to a tenant, you have a good chance of getting a long-term financial benefit. Unlike residential properties where tenants come and go frequently, commercial tenants are more likely to stay for a longer period of time. This is good news for you in building your business and collecting monthly payments. As long as you can keep the tenant happy and provide favorable terms, you should have a nice steady stream of income for years to come.
When you go into the real estate business to invest in an owner-occupied commercial building, you’re much more likely to see your investment grow than if you were to invest in a residential property. This is because commercial properties typically have a higher appreciation rate than residential properties. If you maintain the building well and keep good, reliable, responsible tenants, you could have yourself a lucrative business.
Help From Uncle Sam
When tax time rolls around, you’ll be pleased to know that you’ll get some tax breaks. Owner-occupied commercial properties come with tax incentives that could help you get a nice refund. Plus, the depreciation of the property can also shield part of your income.
Incentive to Maintain the Property
If you intend to have your commercial property occupied by a tenant rather than sell it off, you’ll have the pride of knowing you own it and can do with it whatever you’d like. This will give you incentive to keep it looking nice and perform regular maintenance. This will then attract higher-end clientele who will then be more likely to stay in your building for a longer period. It will also help keep the area looking nicer and attract other business to the area, thus increasing the property’s value.
An owner-occupied property is a wise investment for any real estate professional. Consider this option as you embark on this career.