It is widely agreed that under most circumstances, your first real estate purchase should be a permanent residence, but what about your second real estate investment? A lakeside cottage? Maybe an island home? What about a commercial property?
We often find that people don’t take the time to understand commercial investment before considering their real estate options. Buying a commercial property does not need to be a high risk venture exclusive to wealthy clients.
A buyer’s expectations and realized benefits should be very different from that of a residential real estate purchase.
In most cases, first time investors are looking for safer properties with tenants already in place.
Unlike residential tenants, lease terms for commercial tenants are usually a minimum of three to five years, so turnover is less of a concern.
In addition, most tenants provide a personal or corporate guarantee within the lease contract, which helps ensure that the tenant will uphold his or her financial responsibility. (Continued on PDF)