Investing in property can be one of the best financial decisions a person can make, especially when you consider the importance of establishing multiple streams of income. Even as flashy new investment vehicles seem to appear on the scene almost every day, you might find that the property market is still among the most stable and rewarding places to put your money.
However, property can also be tough. A barrage of factors come into focus once you start honing down on a possible property to buy. Location, cost and potential for profit are just some of the things investors worry about.
Aside from residential properties, commercial developments come with their own perks and not many people out there may be aware of the advantages. Here are a few key reasons why investing in commercial properties may be suitable for you.
Enormous earning potential
While it’s true that some commercial developments often require larger amounts of capital when compared to residential properties, the earning potential is often much greater as well. This can be due to income streams (such as collecting rent from occupants). On average, commercial properties can fetch between 6%-12% returns off the original price and this should be considered a good outcome.
Reliable business leases
You can enjoy financial gains from commercial developments but you are typically also paying for better peace of mind. Reputable businesses often have a vested interest in retaining the appeal and consistency of the premises from which they operate (for a better perception of their credibility in the eyes of their customers and clients).
As an investor, you may get tenants who take better care of the property and you may not have to worry too much about potential damage to the property.
Businesses can also be found leasing for longer periods of time. This means that, as an investor, you get to breathe easy and not worry too much about occupancy rates.
Properties like Rencana Royale TTDI offer tenants luxurious units that are already aesthetically appealing. This can make it much easier to rent these spaces out to online business owners, startups and more.
Laid-back lease terms
Another added advantage of commercial properties is that lease terms are more relaxed and aren’t as limiting as many of the other regulations surrounding residential properties.
In fact, commercial hybrid developments like Rencana Royale are equipped with regulations and layouts that can fit well with commercial purposes while being comfortable and homely as well.
Higher appreciation rates
As an asset, a commercial real estate investment has been known to provide excellent appreciation rates, gradually climbing in value when compared to many other types of investments. Commercial properties are known for appreciating in price due to factors such as proactive management, cost-effective perks like optimal usability and desirability of the asset as well as external factors like supply and demand imbalances.
RENCANA ROYALE @ Taman Tun Dr Ismail TTDI presents an exclusive opportunity for Malay owners to invest in a unique 13-storey commercial development featuring Corporate Suites in the sky, 2-storey Garden Suites, Deluxe Duplex Suites, Deluxe Suites, Executive Duplex Suites and Executive Suites. Find out more here