
Look around and see
the properties rise
Those who have heeded the call to become smarter,
money-wise, typically turn to properties first and foremost. After all,
properties are safe investments; you can purchase a house, apartment, or condo
unit and have the option to sell it in the future should you need the money, or
for the purpose of purchasing yet another piece of property — a bigger or more
valuable one this time.
Think commercial, too
This is an ideal financial strategy, but it's important to
keep in mind that residential investment properties aren't the only prizes you
should be keeping your eye on. There's also the option of investing in
commercial properties, which would be an interesting addition to your portfolio.
Some of the advantages of investing in commercial properties
are: your property can produce income that is directly related to the usable
square footage; you receive greater cash flow when you rent out multi-unit
properties; your lease will be longer compared to that of residential
properties, which means your cash flow will be stable for a longer period; and
your risks are diversified.
Once you decide that investing in commercial properties is
for you, your next step would be to look at the best locations to put your
money in. To guide you in your decision, the real estate specialists at Lauchlan Leishman share
information on the top five markets for commercial property investment below, as revealed
by a report from Reuters highlighting the vibrant commercial real estate scene
in Europe in 2014 (http://www.reuters.com/article/2015/02/04/europe-property-idUSL6N0VD2GI20150204):
Paris —
Investment volumes in this popular city experienced a 31 percent rise in the
last year, thanks primarily to economic and political uncertainties in 2012 and
2013 which caused assets in Paris to become attractively priced in comparison
to the rest of Western Europe.
The UK — Regional
markets (Leeds, Manchester and Glasgow) performed better than London in the
past year, rising 16 percent.
Germany — Similar
to the second-tier markets that performed especially well in the UK, areas like
Cologne, the Ruhr Valley and Stuttgart demonstrated better strength than more
distinguished areas like Hamburg, Munich and Berlin.
Ireland —
Investments rose to 89 percent during this period.
Spain — A 134
percent surge was observed in the country.
Overall, Europe enjoyed an increase of 13 percent in 2014
over its investment volumes in 2013, which is equivalent to $241.7 billion in
commercial real estate transactions. So if you're ready (and financially
capable) to begin aiming for your commercial property investment goals, then a
trip to Europe to scope out the best investment opportunities is in order.
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ReplyDeleteThis is a very informative post. i am trying to invest in commercial property in top 5 markets. There are several agencies that helps in you to invest in commercial property. i came across an agency - Madison Properties. They guided me with some really good madison management agencies that offers invested in commercial property.
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