There are three major options for people investing in properties and those are to invest in either residential properties, commercial properties or industrial properties. Picking a specific one is difficult since all have their own advantages which proves specialization really tricky. However, all also have their own disadvantages. Industrial properties like huge factories and manufacturing facilities prove to be too great for individuals and one would need to join a corporation to do that unless you're a multi-billionaire that is. Residential properties are somewhat limited to a lower range of income and can also be tricky sometimes since there are too many external factors involved which are hard to handle. With that in mind, perhaps investing in commercial properties are the best option for you right now.
There are several obvious reasons why investing in commercial properties is a great idea and a great start for your investing endeavor as well. First, it's a fact that businesses will always be present since it is the main fuel the economy that makes it work. Second, people engaging themselves into business doesn't always have the complete financial capability to own a commercial property and fund the business at the same time. Most probably rented commercial properties first before expanding and buying their own space in the long-run. Funding a business alone involves huge amounts of capital where buying your own commercial space prove to be too much. Doing business also include numerous risks and that's a fact everyone should watch out for. There are also external factors involved in businesses that can indeed spell success or failure. Buying your own commercial space at the beginning of the business is not actually a wise choice since you haven't seen how the business performed yet. If ever the business endeavor does fail, you would fail in two huge investments which is your capital for the business and the misused commercial space. Without income due to failure, one can be in serious trouble for these failures. That is why most people starting on a business usually prefer rental commercial properties. It is better to rent commercial properties for those starting in a business than buying a one which is truly expensive thus adds more risks in the business endeavor. It will then be a huge opportunity of people owning commercial properties to address the needs of these novice business men.
However, owning commercial properties also have its own disadvantages. It might be tough to find occupants for such commercial spaces since every business demands different kinds of market. A certain location can only be limited to a certain area of influence where it is limited to a few businesses where it can really gain profit and grow. Certain businesses also would involve certain activities that would really exhaust the building physically which would do certain damages to it. You can make an agreement with the occupant about the repairs and maintenance work but that can only do little and larger repairs would still be on your shoulder. Still, commercial properties offer larger income compared to residential properties since the locations of commercial spaces alone are expensive specially when they are strategically placed on areas where a lot of people can access it. With all that, investing on commercial properties will still be one of the great investment endeavors one can do in their lifetime.
