Unlike many stocks or other investments, commercial real estate allows for easy income production.
With a variety of ways to invest your money, you may be wondering what will be the most secure while also giving you the highest returns. While you may be coming up with a mental list, you might be surprised to learn how commercial real estate is one of the best ventures. Even from a historical perspective, property is one of the best ways to make money off an investment.
Security
Unlike stock, which is often based on the success of luxury items, commercial real estate is based on basic needs such as shelter, retail, and office space. These items are in perpetual demand, and even in times of economic crisis, they can continue to succeed.
Leverage
Because commercial real estate is almost never bought outright, the ability to build wealth quickly is high. Banks are also more willing to make loans on commercial real estate over other types of investment because they know the potential risk is low and the rewards are high. Not to mention, while stocks can fluctuate dramatically, real estate prices tend to remain stable, making them very secure.
Capital Appreciation
With the backbone of commercial real estate hinging on the real estate market, it is one of the first items to be influenced by inflation. This unique aspect means that real estate is often one of the first prices to rise, meaning that rent levels can increase quickly making for high property values.
Income Producing
Unlike many stocks or other investments, commercial real estate allows for easy income production. Because it provides for monthly, cash distribution, commercial real estate is perfect for those who want to invest while seeing immediate results. Additionally, commercial real estate has a tendency to give back about 10% in profit, while stock dividends rarely make it up to the 3% mark.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for the perfect realtor for your property or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with selling your home and getting the best possible price, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, Pinterest, and Google+.