Majority of investors start out investing in residential real estate simply because they’re more familiar to purchasing homes, but commercial real estate is a better way to guarantee your portfolio. You just need to get master on certain rules and terms in the commercial market. Following lines may help you to have a broad picture of commercial real estate in Florida.
Commercial or Residential?
Let’s scrutinize the differences between commercial and residential real estate investments.
The income that a piece of commercial real estate generates is mostly related to its usable space. This isn’t always the case with residential, big waste of space if you are not living in and your objective is investment.
Let’s put it this way, your cash flow with multi-unit commercial property would be great and your income is calculated based on per square foot, hence you will have more tenants as a result the yield would be high.
Imagine you own a commercial building and you lose one of your tenants, you only lose small part of your income for that property, whereas in a single-family house, you may lose the entire rent which is the only source of your investment income.
The rental agreement of commercial properties are quite longer than residential. This helps with the stability of your cash flow.
If you are thinking to get loan from bank in order to purchase commercial property it’ll want a higher down payment than for residential property, usually 25 percent or more.
Why Florida commercial investment looks interesting?
Before jumping into any investment, it pays to do your homework, to analyze the market. You need to find a proper answer for the following questions, but we have made it easy for you.
Is business booming in Florida? Florida’s flourishing business climate continues to gain the attention of international business investors from all over the world. A large and talented workforce, zero percent personal income tax and an efficient regulatory environment provide a strong landscape for businesses to achieve.
Is the site properly zoned? Selecting the right site for investment is critical. But as you consider the pluses and minuses of possible locations, you may come to know that many companies now realizing success in the Sunshine State. They may have settled here in a different areas and for a different reason, they all found their future in Florida.
Real Estate Investment in Florida have been always a solid investment. Whether evaluating Florida’s properties for sale or other commercial investment opportunities, there has never been a better time for commercial real estate investments in Florida.
Consult with your commercial real estate specialist in Florida Jean Deglon. Jean@FloridaInv.com
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