[:he] Are you interested in purchasing a profitable property but are debating between a residential apartment or commercial real estate? You will surely be happy to know that you have come to the right place. Although there is a similarity between the two, but from an economic point of view you should know one thing – investing in a property that yields a business is not the same as investing in an apartment for residential purposes. The reason for this lies in one fact – residential real estate is on a constant upward trend, while commercial real estate has been volatile for years. And that’s even before we talk about the cost of financing, taxes and other costs. We have collected for you a number of differences between the various forms of yielding assets – commercial real estate And residential real estate:
- The cost of financing – in most cases, investing in profitable business real estate (as opposed to buying residential apartments for investment) is done through bank financing, so in such a case, the real yield must be examined, and the low interest rate and the cheap loan should be taken advantage of. However, one must take into account a situation where it can change and the real return will change.
- Taxes – business properties for investment as opposed to residential apartments purchased for investment purposes are obliged to report to VAT. If you want to put it another way – more dealings with the tax authorities on every What this implies.
- The market situation – the purchase of an investment property of any kind (residential apartment or commercial real estate) requires familiarity with the specific market, that is, with the residential apartment market for investment or with the commercial real estate market. In fact, knowing the market in advance prevents Economic changes of this and that affect us negatively, for example changes that affect the ability of the tenants of the property to pay rent.
There are those who claim that the state of the market is the most important factor that affects the profitability of the investment for one reason – this is an unfamiliar market that is an economic operation It requires knowledge, experience and expertise. However, the additional factors must also be taken into account and remember one thing – investing in a business-yielding property is considered more complex than investing in a residential apartment, therefore it is not suitable for everyone. Investing in a yielding property requires professional advice from a person who knows the field and The market is good. At Yair Levy you will find a variety of profitable properties for investment, and professional support in choosing a suitable property, financing and more. we will be happy to be at your service. Contact[:]
