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A Quick Commercial Property Investment Guide

What types of properties are in Commercial Real Estate?

The term "commercial real estate" can be described as assets that are primarily employed for business-related uses. There are a lot of companies that provide the services of commercial property investment. You can also take advice from professionals about commercial property loans via this link

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Real estate that is used for commercial purposes is generally classified into the following types:

1. Office building

2. Industrial property

3. Retail/Restaurant

4. Multifamily housing and

5. Farm/Rural land.

What are the major distinctions between Commercial Property and Residential Property Investments?

If you choose to purchase commercial property you are hoping to lease your property out and make a profit from rent as you would purchase an investment property for residential purposes. 

But the major difference between purchasing commercial real estate compared to residential properties is found within the Rental Agreement. Commercial real estate refers to the property which is usually that is leased to businesses under the terms of an agreement for a longer period of time.

There are also other significant variations, such as:

1. The Citizen is sometimes called Lessee.

2. The gap between tenants may be larger.

3. Tax on Goods and Services applies for commercial properties (i.e. to the purchase price as well as the rent paid and all other costs that are related to the property) 

4. Maintenance expenses are usually borne by the tenant, so the rent earned from rental properties is usually higher.