Friday, February 15, 2019

Thinking Of Investing In Commercial Real Estate Tampa? Key Benefits To Consider

By Amy Cox


The property market has a long history of being attractive for those investors who have built up plenty of capital and are searching for new investment opportunities. When it comes to diversifying your portfolio, most of the property consulting firms recommend investing in commercial real estate Tampa. This is because there are so many benefits that you can reap when you put your money in income producing properties instead of residential property. The following are some of the benefits that you can be able to get from such an investment.

One of the most important benefits that are associated with investment in these properties is the potential for high returns. These properties are usually big in size and they accommodate more tenants than residential properties. This means that the level of annual income that you receive will be very high than that offered by alternative investments including bonds and stocks. This makes it a better investment in the long term.

If you invest in the property market, you will get a steady income level especially if the leases are longer. For residential property, the lease lasts for one year after which the tenant has the option to renew it. However, income generating properties have leases that last for more than two years and there are some that can take 15 years or more. The long term leases provide security for the property owner.

Investing in the property market provides the owner with generous tax benefits that can offset their income stream and reduce their tax bill. Investors have the option of claiming for tax shelters. The biggest tax benefits that you can get from this investment include the depreciation deductions and mortgage interest deductions. To get the full tax benefits, it is advisable for the investor to consult a tax professional.

Unlike the other investments that have the tendency to appreciate slowly, you will benefit from faster appreciation if you invest in these properties. You can enhance the appeal of the property to ensure that the value of the asset appreciates with time. For instance, you can choose to undertake those improvements such as interior decors that can allow you to increase the rent that is paid by the tenants.

The investors in this industry enjoy very little competition. Most people are unable to raise the capital that is required to put up these structures and they usually prefer to invest in residential properties. This presents the investors in this market with a practical opportunity to increase their wealth by putting their funds in this market.

There is a very low degree of risk when you invest in this market. Most of the operating expenses are usually paid by the tenants based on the lease agreement. This especially applies in the case of the triple net leases that are common in this industry. In addition to paying the monthly lease amount, the tenant is responsible for the maintenance and repair costs on the premises during the lease term.

Investing in commercial property is an excellent business move that can provide you with great returns on your investment. You can be assured that you will not live to regret the decision of investing in this market.




About the Author:



0 comments:

Post a Comment