Delaware residents who are thinking of investing in real estate may wonder about the choice between residential and commercial types. While buying residential properties has some benefits, it may be more beneficial to purchase commercial properties for several reasons.
Commercial properties usually have better tenants. Landlords of residential properties are obliged to handle all the home’s problems, which can occur anytime during the day or night. However, commercial property owners can expect calls during the day when the business is open, and their relationship with their tenants will likely be more business-like and professional.
Further benefits of investing in commercial properties are that they are more likely to produce higher yields and a steady source of income than residential properties. This is because commercial tenants tend to sign extended leases and are responsible in many cases to pay expenses that residential landlords usually pay for, such as property insurance and maintenance costs.
Commercial real estate investments also traditionally carry excellent appreciation rates, which typically meet or even exceed other sorts of investments, especially if the business is in a good location where new developments attract customers. Another benefit to investing in a commercial property is the fact that it is typically more secure than residential property investments. Along with the property’s land and location, the property can hold value that provides another layer of security and is not dependent on the present tenants.
When people invest in commercial real estate, they may be able to enjoy a steady flow of income. Prior to making a decision, they might want to speak with an attorney who can review the proposed purchase agreement in order to ensure that there are no provisions that could cause future problems.
Source: Realty Biz News, “4 Reasons to Invest in Commercial Property vs Residential”, Al Twitty, May 13, 2017