In these trying financial times, when everyone is scrambling to keep body and soul together (and maintain their sanity while they're at it), it's a good idea to consider some form of property investment as a buffer against total liquidation. Following is some information on the differences between commercial and residential properties, the advantage of owning an apartment building and the importance of the general contractor.
Commercial vs. Residential Properties
Commercial real estate is defined as a piece of property that is primarily intended to generate profit of some type. Some examples of commercial property include hospitals, car garages, office buildings and shopping centers. Commercial property tends to be more expensive than residential property, as well as more difficult to sell.
Residential property, on the other hand, is usually intended for housing of some type. Those interested in the purchase of a piece of residential property may be planning to rent it out, but the property is still considered residential.
The Apartment Advantage
Apartment buildings that are five or more units are considered commercial real estate. The purchase of an apartment building is one of the best ways you can leverage yourself to ride the waves of the current economic slump. Many people who cannot afford the price of a full-sized home would be interested in a less-expensive apartment, thereby giving the owners of apartment buildings an edge over those who rent out full-sized homes.
The Importance of the Contractor
As with any piece of real estate, apartment buildings can exhibit problems such as leaky roofing, clogged toilets and drains, kitchen fires, flooding, malfunctioning boilers and aggravatingly fickle HVAC systems.
Because of the foregoing possible scenarios, you will want to be sure that you are fully equipped to handle any and all problems that may (will) pop up at some point. One of the most important people in your life will be your general contractor. The contractor is the one you will call out to fix the HVAC system that refuses to heat, the roof that sprang a leak and the drain that swore to never let another drop of water through. If you have a quality general contractor, you will be able to rest assured in the knowledge that your property is receiving the best care possible.
Choose Your Commercial Property Well
As with any investment, you will want to be sure that you are getting the best deal available for your money. Keeping tabs on all aspects of your commercial real estate purchase can be a daunting task, to say the least. Enlist the help of a commercial real estate company like Baddour And Associates Commerical Realtors for assistance in making a purchase you will not regret.Share