Home  >>  Write  >>  Real Estate  >>  Buying Real Estate  >>  Types of Property  >>  Commercial Property


Commercial Property

When it comes to looking for real estate investment, many individuals begin their Real Estate Investing search at residential properties.  Whether it is a condominium, a townhouse, a loft, a house, or another type of property, residential property has become one of the most successful investments in the country.  However, for the more astute Real Estate Investor, there is another form of realestate that you may want to consider.

This type of real estate property are commercial properties.  Commercial property refers to any type of property that is used for the purpose of creating a profit.  They generally refer to business properties such as office buildings but can also include other profitable industries such as hotels, malls, and retail stores.  In some instances they can be used as industrial properties and medical centers, however depending on where you live, you may require a special zoning permit to start up one of these endeavors.

The obvious advantage of a commercial property is that it offers a way to make money outside of natural property appreciation.  Look around Commerical Properties In your area, and you can see that they are often turning a profit.  On the other hand, commercial property endeavors require more work on your part.  As the saying goes, it takes money to make money, and if you are running your own business in a commercial property you have to understand the risks of having your own business.

If you have decided that running your own business is not for you, you do not have to discount the possibility of Real Estate Investing in Commercial Property.  This is because one of the more popular uses of commercial properties are using them for rental income.  Houses for rent are very popular for a large segment of the population who either do not have the necessary savings to buy a home for sale or do not feel that home ownership fits in with their life at the time.

From a taxation perspective, many states have real estate laws that blur the lines between residential real estate and commercial real estate.  That is because Commercial Real Estate is determined by a properties size.  Depending on the number of units, many homeowners will find that the house for sale that they bought is considered a commercial property by their state government for borrowing and tax purposes.

While it does require a bit more work, commercial real estate is a real estate industry that provides high rewards but also high risks.  Real estate factors such as location and the quality of the property come into play when you are looking for commercial property for sale.  However, if you feel that you have the business acumen and are up to the challenge, Commercial Property may be the Real estate investment for you!