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Why Commercial or Industrial Real Estate Investment is better then residental Real Estate Investment
By Vic Hurlstorm | April 26, 2009
If you are in residential real estate investment, do you experience the problem of complaints from your tenant like leading roofs or water seepage or even like noisy neighbours. However, majority real estate players choose residential than commercial of industrial. This is mainly because commercial or industrial real estate investment is not a comfort zone of the mass.
There are many advantages in industrial or commercial real estate investment.
Commercial or industrial real estate have higher rental yield.
For instance, if you buy a shop, then rental return depends a lot on human traffic. If you invest in the right shop space, given the same cost for residential, the rental yield for the shop will be higher than the residential.
Also, most commercial tenant that take up the unit will know about the human traffic flow and will know the market rental price. As compare to residential property, there are usually many choices available within the vicinity, which can easily cause a price war.
2) Commercial Property Improvement
Industrial or commercial tenant usually used the property differently from residential tenant with not much emotion attached. The tenants normally fixed up the defect so that they are move on with the business operation. The tenants will even add in improvement like telephone line, local area network, the better corporate looking door to improve their corporate image. Installing of office partitions and rooms will also add value to the property.
Rent collection
Before renting out the unit, you will need to check the credential of the tenant business as one of the risk assessment. If you own a factory, normally business owner that is seeking factor for rent is of good credential. With a strong credential, you will have a good peace of mind when comes to collection of monthly rental. Many corporate tenant disperse the monthly rental to the landlord as part of their accounting procedure. For residential property, such procedure may not be set as it is more of the tenant individual effect.
You may like to check out interesting property like Tuas Factory For Rent and Tuas Connection For Rent and Tuas Lot For Sale
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