A Commercial Condo Is One Option When Buying Investment Property
When someone mentions the word condo, people are more familiar with residential condominiums. However, there is another type of condominium for those who are interested in buying investment property. Commercial condos are built for non-residential uses such as offices, retail shops, hotel rooms, etc.
Like residential condos, owners of commercial condos can rent or sell individual units to interested buyers. Even though all the units are attached to each other, a different person or business owns a separate piece. There are multiple owners, similar to a residential complex. The question becomes what are the advantages for investors and business owners for choosing a commercial condo when buying investment property. The biggest advantages of commercial condos are flexibility and affordability.
Since each condo unit is a separate, transferable piece of property, the unit can be sold without seeking approval and permission from multiple parties. Commercial condos also provide an option for investors who cannot afford to buy an entire building or complex. Each commercial condo unit is only a part of a building or complex and therefore more affordable.
When buying investment property, you should look at combining a commercial condo with residential condo units for a mixed-use development. Some common examples of mixed-use developments include medical office parks or retail condos at street level and residential condominium units in the upper level. Combining the two types of condos into one development increases the pool of possible owners and tenants.
A commercial condo also provides business owners an alternative to renting or leasing space and gives them tax advantages. Some of the advantages to businesses who are owners of commercial condos instead of tenants of rented or leased space include deductions for property taxes and interest, building assessments, utilities, insurance, repairs and depreciation.
When buying investment property, commercial condos are a good option for both investors and business owners. It is important to look at any agreements with condominium associations to see how any regulations or fees can affect the value of your investment. This is especially important to investors who are renting their condominiums to tenants because they must be decided who will pay for any regular maintenance and assessment fees.
Commercial condos are a good starting point for investors and businesses that have a smaller budget, are interested in buying investment property and want to take advantage of ownership benefits. It is important to do your research and make sure buying commercial condos is the right fit for you.
With over 20 years of experience in northern Nevada real estate, Greg Hughes is an expert at http://hughescapital.com”>buying investment property in Sparks . His business offers clients a great way to invest in real estate. For more tips about real estate, visit Sparks Real Estate Investment Advisor Greg Hughes’ http://hughescapital.com/blog”>blog
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