The Benefits of Buying Commercial Real Estate
There are many reasons to buy and invest in commercial property in Canada, below lists five available options.
1. Free Rent
While many pure investments might not provide the option, others will find owning commercial real estate helps facilitate their other goals. Multi-family and mixed use properties might provide free living spaces as other units cover the expenses.
Canadian business owners can find owning their premises far better for their organizations that renting. With interest rates so low, mortgage payments on retail and office buildings could be less than rent.
Multi-tenant properties can even provide additional revenues. Equity appreciation often proves to build business assets better than main lines of business.
2. Owning Prime Property
Perhaps you don’t need additional income or space now, but would like to build great wealth in the future, or build a property in a specific spot in the future. Commercial retail shopping plazas, offices and even infill lots can be on prime property. Prime property which will go up significantly in value and can be sold or built on later.
3. Be a Part of the Community
Even young investors, who aren’t planning to settle down anytime soon can find commercial real estate a very rewarding investment. It’s a great way to not only be a concrete part of the community, but also to have a say in the direction it goes. Will it become greener, trendier, more innovative, stay affordable or provide better services to locals? You get to influence that when you own commercial properties.
4. Wealth Preservation
Wealthy and experienced individuals and investors have consistently chosen real estate to protect what they have, in particular commercial real estate. In addition to simply providing concrete asset protection, direct investment in commercial property offers diversification and defense from inflation.
5. Passive Income
Whether you’ve already have one foot in retirement or just beginning to invest, passive income can bring more flexibility and choices to your lifestyle.
There are many benefits to buying commercial property in Canada. Between historically low interest rates and the expectation of rising asset prices, investors will find they are able to realize the most of these advantages by getting in now, versus later.