Commercial Property is the Preeminent Consign to Park your Capital
Investment has turned out to be the most significant wealth generator of people these days. People are coming to terms with the fact that the limited land, available with us, will someday run short and wouldn’t be able to accommodate everyone in the world. Going by the general rules of Economics (demand surpassing supply), one can unambiguously believe that the price of land will only rise and investment in property can, therefore, reap many results.
Property market is inundated with options. The story starts with residential property. Many gurus in the field believe that a residential property is one of the preferred modes of investment. The reason is that one could decide to stay in the house or even choose to rent it out. However, proving all the gurus wrong is the past data that is available. This data shows that commercial property has managed to generate much larger results for property owners than residential property. Moreover, there are various other reasons which make commercial property a better investment avenue when compared with residential property:
QUALIFICATION: The first point that will work in your favour, in case of non residential property, is that you do not have to personally qualify for the loan. The property qualifies for the loan, on the basis of its growth prospects. This saves you of going through the entire scrutiny to qualify for the loan.
GUARANTEE: Another relevant aspect of the same is that you are not required to guarantee the loan personally. This means that if you fail to pay back the loan, the bank or the lending agency will take away the property. However, they would make a claim on your personal property for the loan. Moreover, such failure to pay the loan does not have a bearing on your personal credit history.
MANY OPTIONS: A commercial property will definitely come more expensive than a residential property. While it will pay back to you in terms of the profits that it generates for you, you will definitely have to make the initial investment. However, there are options available through which you can reduce your initial investment. One such option is shared ownership. Instead of taking up the entire property in your name, you can decide to share the ownership of the property and share the investment and returns on the same too. That is where shared ownership can help you save on a considerable amount.
While these are the available benefits, you will always be suggested to have all the details in hand. There are some fees that you might need to be paying initially which will not be covered by the loan. You must, therefore, have the necessary reserve to make payment in that regard. Also, there are other formalities that you should keep yourself informed about.
Humphreys & Co. is UK’s leading solicitors firm that provide all types of solution for Commercial Property, Passing off, Mesothelioma and others for their local and international clients.
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