Uploaded on Apr 3, 2020
With real estate leveraging, you will enjoy a much higher return on investment compared to buying outright. Also, commercial real estate leases tend to be more favorable for banks and are much easier to approve due to the higher likelihood of a stable income flow. For more information on the benefits of investing in commercial real estate Philippines, visit our website at http://premiumpropertiesph.com/
The Benefits Of Investing In Commercial Real Estate Philippines
The Benefits Of Investing In Commercial Real Estate Philippines The Benefits Of Investing In Commercial Real Estate Philippines • If you have decided to try your luck in property investments, you should not limit your scope to residential properties like most people tend to do. You may miss out on a potentially huge opportunity if you consider just residential properties. The income and equity potential in commercial real estate Philippines is much larger, despite the risk being greater compared to residential properties. The following are some of the benefits of considering commercial property investments. • First of all, commercial real estate has higher income potential. Due to the property size as well as number of tenants that a commercial property can potentially hold, the annual return that you can expect is much higher compared to other investments, such as stock dividends which average between 2 percent to 3 percent annual return. With commercial real estate investments, the range is much higher; between 5 percent to 15 percent annually. Apartment buildings or multi-family properties tend to be toward the lower end whereas suburban offices tend to be at the higher end. The Benefits Of Investing In Commercial Real Estate Philippines • Another benefit of investing in commercial real estate Philippines is that leveraging increases cash flow, which leads to higher equity potential. Most of the equity that is built in commercial property investments is increased through leveraging. What leveraging means here is using borrowed capital to make an investment with the expectation that the profits will be greater compared to the payable interest. This way, you can put down a small percentage of the buying price on a particular property, finance the remainder and then invest in more properties in the same manner. • With real estate leveraging, you will enjoy a much higher return on investment compared to buying outright. Also, commercial real estate leases tend to be more favorable for banks and are much easier to approve due to the higher likelihood of a stable income flow. • For more information on the benefits of investing in commercial real estate Philippines, visit our website at http://premiumpropertiesph.com/ The Benefits Of Investing In Commercial Real Estate Philippines
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