Commercial Real Estate investment is and will stay one of the top choices when you want to double your money. In 2015 the U.S commercial real estate sales reached $435 billion.
Compared to investing in stocks, bonds or other commodities such as gold, real estate returns are way more attractive. They can increase in the long term. Commercial real estate investments are defined by their ability to pay out regular cash distributions.
The National Council of Real Estate Investment Fiduciaries (NCREIF) property index “promotes and reflects the growth of institutional investment in private commercial real estate”. The NCREIF Index reported an annual return of 12.7% in 2015.
Top 3 Reasons to Invest in commercial real estate:
- Cash Flow
Commercial real estate investments bring steady or rising cash flow over time to its investors. You can count on getting steady cash flow with income distributed to you monthly, quarterly or annually, depending on your criteria.
- Tangible Asset
Commercial real estate is a hard asset compared to the shares. Buying shares in the hold certain risks, as the company might not be here in the next 10 years. The real estate, on the other hand, can be literally touched and could stay for more than 100 years.
- Inflation / Economy Hedge
Commercial real estate can outstand inflation. International Investors invest in US commercial real estate as a hedge of the US economy. With inflation, the renting prices go up, hence the chances for a higher return on investment are present.
There are so many more great reasons to invest in commercial real estate, including industry-specific TAX, and ESTATE BENEFITS! Our team of experts will be glad to share them with you. Schedule a time to speak to one of our advisors and learn more!