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Everything you need to know about commercial real estate investment

Posted by DanbelPro@InvLtd on April 27, 2021
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Real estate is one of the most popular and oldest form of investment. One of the most appealing aspects of real estate investing is its wide range of possibilities. Each form of real estate investment, of course, has its own set of advantages and disadvantages; nevertheless, the key to succeeding in Real Estate Investment is knowing how to read the market to decipher profitable deals. One very popular yet lucrative form of real estate investment is Commercial Real Estate.

The process of purchasing real estate primarily for the purpose of doing business and producing income is known as commercial real estate investment. Investors can make money from commercial real estate through different categories, including office rooms, retail stores, hotels and resorts, malls and restaurants, and even healthcare facilities.

Commercial real estate investment, in contrast to residential real estate investment, necessitates a greater amount of money but yields a higher return on investment. A commercial real estate property’s value also increases faster than a residential real estate property’s.

Forms of Commercial Real Estate Investment

Long-term Commercial Lease: In this case, the property is rented to the interested customer for a long period of time, such as 5-10 years, by the owner or group of investors who own the property.

Short-term Rental Period: The property is leased for a limited time, such as 12 months, after all parties have agreed on a rental rate. It’s also possible to rent it out for a month.

Flipping: This is the mechanism by which an investor or group of investors buys a property or a group of properties with the intention of reselling them. They purchase at a lower cost and profitably resell at a higher cost. Few owners will hold the property for as long as they want before reselling it, but the majority do so within a few months of purchase (usually 3 to 6 months).

How do you manage your commercial property

This can be achieved by the owner or by hiring a good commercial real estate management company like Danbel Properties and Investments Limited to help with the property’s maintenance and management. The company helps the owner attract and keep tenants, as well as monitor and plan the property’s activities. A commercial real estate firm’s services are frequently recommended due to their extensive knowledge of the rules and regulations, as well as government policy, that regulate real estate investment in Nigeria.

Is It a Good Idea to Invest in Commercial Real Estate in Lagos?

With a population of over 15 Million, Lagos is the world’s sixth largest megacity and a major economic center in Nigeria. Compared to New York City and Los Angeles, Lagos’ population is growing ten times faster, outnumbering the population of 32 African countries combined. Of course, with such a large population, real estate will continually remain a hot commodity and a key investment sector.

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