Commercial property is real estate that is used for business activities. Commercial property usually refers to buildings that house businesses, but can also refer to land used to turn a profit, as well as large residential rental properties. Commercial real estate includes several categories, such as retailers of all kinds, office space, hotels & resorts, strip malls, restaurants, and healthcare facilities. The technical difference between a residential and commercial property is as follows: Residential real estate is all single-family homes and one to four-unit rental residences. Commercial property is anything that offers 5 or more units. Now that we have covered what Commercial Property is, we can discuss Mountain commercial properties! Commercial mountain property is a great investment that will eventually pay for itself if you go about it correctly. In this article, we will dive into commercial property and all you need to know about it for your interest in investing in the mountains of North Carolina. Let’s begin!
Commercial Property in the Mountains of North Carolina
Why Invest in Commercial Real Estate?
If you have never dealt with commercial real estate or even if you have a lot of experience it is good to know that it is a wise choice when trying to figure out how to invest your hard-earned money. Here are a few reasons why you should invest in mountain commercial real estate.
High Income- The potential in buying commercial property is very high! An investment that ends up paying for itself out. When you purchase commercial property you have the added bonus of being able to continue to build your income, with rent and higher potential for returns as well. You could have a home you are renting out but only receive small payments with rent, commercial properties can be double what a residential home will bring you monthly. As you see the money rolling in from your investment you can then turn around and continue investing in even more commercial properties.
Tax benefits- Who does not enjoy any benefit when it comes to taxes? you have depreciation, which can allow you to deduct a portion of your property’s value from your taxable income each year. For many investors, this reduces the total tax burden in a massive way. With 1031 exchanges you will be able to avoid capital gains when you make the choice if you ever do to sell your property. What you will need to do is exchange those profits you have made for another commercial property or even an asset. Be sure to also speak with a tax professional before making any major decisions.
Less competition- When you are dealing with residential real estate you know that this area in real estate is extremely competitive. Luckily in commercial properties, it is not that way. The dollar volume for commercial real estate in the U.S. was 57% lower year over year in the third quarter of 2020. Therefore, it should be easier to find a commercial property right now — especially when you compare it to other assets on the market.
Less Turnover- Most of the time when you have a commercial property, the turnover rate is very small, the reason for this is the leases tend to be for longer periods of time. This means your person under contract has stated they will be responsible for paying you for a longer period of time than a typical year lease.
Problematic Tenants- When you are renting a home to a family you can run into all kinds of issues, but with commercial real estate you have the peace of mind knowing they are using your property for their business and will most likely take care of it as you would.
Wright Properties NC; Here to help you find the best commercial property
Wright Properties NC is located in Boone North Carolina. If anyone knows about mountain commercial properties in Banner Elk, Boone, and Banner Elk as well as surrounding areas it is these guys! If you are looking to take the leap and invest in commercial property go to their site and look around, if you see something you like give them a call and start investing in your future!