Nonresidential property investment has long been considered a great idea in New York and other parts of the United States. The question is whether investors should still view commercial real estate as a viable option in 2019. According to industry experts, they should for a number of reasons.
First, experts say that nonresidential properties consistently offer returns, which makes investing in them a better option than shared ownership. With the latter, ill-informed decisions by managers coupled with subpar market conditions may lead to rapid declines in shared values. With the former, however, investors can receive continual rental income and own properties that are lucrative to sell if they make smart investing decisions.
Of course, nonresidential property does pose some challenges. As an example, commercial real estate rentals are in decline due to the current market correction in certain areas of the country. Furthermore, a person typically needs a large amount of capital and an understanding of various sectors to succeed as a commercial real estate investor. Still, the advantage of nonresidential property investing is that its returns are usually higher compared with residential property investing. Specifically, returns can be as high as 12 percent for commercial investors compared with just 4 percent for residential investors.
Considering the many positive aspects of commercial real estate, now might be a wise time to jump on the nonresidential property deals springing up in New York. Still, this process may understandably be intimidating and confusing for investors with little experience with it. Fortunately, a real estate attorney can walk an investor through the legal components of this type of deal and help him or her to make educated decisions that will benefit him or her long term.