Real estate investing is one of the best ways to build wealth. Unlike other investment vehicles such as stocks, real estate will go up in value on a consistent basis over time. When it comes to investing in real estate, there are a number of options that you can take advantage of. Residential investing where you acquire single family houses and multi family properties such as duplexes is the first thing to come to mind.
However, commercial real estate is another type of real estate that you can acquire. With commercial real estate, you will be able to take advantage of a number of benefits. These include tax deductions, building more equity, receiving rental income and contributing to economic growth. With all of these benefits, you will be able to use commercial real estate to build wealth.
One of the main advantages of real estate investing in commercial buildings is more equity. Since these properties include apartment complexes and office buildings, they are much higher in value compared to residential properties. As a result, you will have more equity built up. With the equity of a commercial building, you can have plenty of funds to invest in another commercial property that is even more valuable. Having properties that accumulate very high amounts of equity will enable you to increase your wealth on a regular basis.
Another benefit of investing in commercial properties is rental income. Whenever you acquire a commercial building, you will receive funds from tenants who pay to use the available spaces in your building. As a result, you can make money as you build equity. While you can make a rental income with residential properties such as single family homes, commercial buildings offer more tenants and more sources of income.
Real estate including commercial buildings has a number of tax advantages. As a property owner, you will be able to deduct things such as property taxes, mortgage interest and use depreciation. With these tax advantages, you will be able to save money and put yourself in position to build even more wealth.
One of the most valuable tax deductions that you can use with commercial properties is deprecation. Commercial buildings will allow you to deduct a significant portion of the properties’ value. As a result, you will be able to eliminate any taxable income and therefore keep more of your money.
Another valuable deduction is the mortgage interest. Like residential properties, you can deduct the interest on the mortgage you pay for a commercial property. With this deduction, you will be able to reduce your taxable income and keep more of the revenue you make from the commercial building.
Commercial property owners can also deduct property taxes as well. These are taxes you need to pay the government for your property. Owners of commercial properties will be able to deduct the taxes they pay for having their commercial building. As a result, they will be able to reduce their taxable income as well as save more money.
CONTRIBUTE TO ECONOMIC GROWTH
As well as using tax deductions, receiving revenue from rental income and having high appreciation, commercial buildings can also contribute to economic growth. When you own a commercial building, you will be able to provide businesses with a place to run their operations. This can allow the business to have a stable place to run their company as well as hire workers and assemble inventory. By contributing to economic growth, investing in commercial properties can benefit not only the owner but also the community as well.
Investing in real estate provides many people with a number of unique benefits. When looking to invest in commercial properties, investors will be able to take advantage of a number of things that will help them increase their wealth. When investing in commercial properties, individuals will be able to make progress towards establishing financial independence.