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Why Should You Own Commercial Real Estate in Melbourne

Why Should You Own Commercial Real Estate in Melbourne

Most often, business owners start the New Year by setting up goals and making plans related to their business. But most entrepreneurs these days are interested in investing in commercial real estate. They are willing to buy commercial real estate in Moorabbin and other suburbs of Melbourne as they know commercial real estate purchase can be a solid foundation for growing the business.

The business climate these days is inviting investors to invest in commercial real estate. Here are the top 5 reasons why you should own commercial real estate in Melbourne:

1. Diversification

Commercial real estate is different from stocks. It has a very low correlation with the stock market, which means the drop in the global equity market may not impact your investment.

Also, when you liquidate the asset, commercial real estate has higher returns than that of stocks and bonds.

2. Control over your Company’s location

You can always rent a space or sign a lease to set up your business. By doing this, you preserve your site, but you can’t control the external factors. What if your landlord wishes something else?

If you own your space, you have control over it. If the space is too big for you, you can rent it out and generate extra income. When you own the property, you have the flexibility to decide how you are going to use it which you don’t have in the leased property.

Besides the flexibility, you won’t have to worry about the rental rate increases. The landlords can also sell the building to those who have different goals or want other tenants. Buying a commercial property can save you from all these problems.

3. Locked in cost and appreciation

When it comes to rents, the landlord can keep on increasing the rental rates. When you buy your commercial property, you can lock in the monthly payment for years which is not going to increase.

Commercial real estate has a high rate of appreciation, you can run the business until you want, and if you’re going to sell it, and you can enjoy the benefits of appreciation. Commercial real estate is an excellent long-term investment.

4. Tax Benefits

You can also secure some tax benefits when buying commercial property. You can claim deductions related to depreciation, interest expense, amortization expense, and other non-mortgage expense to defer the tax.

If you buy industrial real estate, some part of your income will be legally sheltered from taxes.

Buying a commercial property can save money, increase your income, and also be beneficial for the growth of your business. If you do proper research while buying commercial property, it can be extremely rewarding for business growth.

About the Author:
Christian Taylor, is a real estate agent associated with Just Commercial, a boutique real commercial and industrial real estate agency in Melbourne. The agency specializes in selling, leasing, and renting of commercial and industrial properties in the South of Melbourne. Reach out to him reception@justcommercial.com.au

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