Ways to Make Money from Commercial Property Investments

There are basically five different ways in which you can make money by investing in commercial real estate.

Strategy 1: Building equity. The key way to make money in commercial real estate business is by building up equity in the property. You can do this in four ways that are mentioned below.

The first way is to buy the property below its market value. To do this you will have to do your due research, you will have to find out the needs of the buyer and you also have to be good at negotiation.

The next way in which equity builds up is through the appreciation of property. You can easily ensure that your property appreciates by marinating it properly and undertaking the necessary repair work. It is also important to buy a property in a location that promises to grow.

The third way to build equity is by paying down debt. The key to this strategy is to try and get the lowest interest rate possible on your debt instrument. The fourth way in which you can create equity is the time when you sell the property. You must try and sell you property at above market value and to do this you have to put in effort to find the right buyer and again you have to have good negotiation skills.

Strategy 2: depreciation of property. You can save a considerable amount of tax as depreciation on building is tax deductible expenditure. When you arrive at the profit before tax, you are allowed to account the expenditure on depreciation of assets as an operational expenditure. This way you have to calculate the percentage of tax on a lower amount. It is however important to note that depreciation can be charged only on the building but not on land. Strategy 3: Charging suitable rent. It is important that the property generates enough rent so that you can easily cover the expenditure if its maintenance and can also cover the interest payment of the mortgage. But you should not stop there, it should be your goal to try and get additional rent so that you can pay off the debts and thus create equity.

Strategy 4: Attractive financing schemes for the buyer. When you are selling your property, you can fetch a better price if you offer convenient payment schemes to the potential buyer. For example, if you allow the buyer to pay in easy installments and do not want a heavy down payment, then the buyer may be willing to pay you a higher over all price. Strategy 5: Add value to your property. You can add value to you property in various ways. Try and make strategic improvements in your property that will help you to increase its worth. You can also put your property to higher and better use to increase its worth.

William King is the director of Dubai Property & UAE Property & Dubai Real Estate Portal, Pakistan Property & Pakistan Real Estate Properties Portal , Canada Wholesalers & Canadian Dropshippers Suppliers Directory and Wholesale Dropshipping & Wholesalers Suppliers Trade Directory . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

Landscaping Advice To Create A Sellable Commercial Property

There are a few things to consider when you are looking for landscaping elements for a commercial property. The first thing to consider is how much maintenance you care to undertake and who will be doing it? The next thing to consider is whether you can take advantage of energy or water saving strategies.

If you have a lot of grass, you are probably going to need a landscaping company to keep up with the mowing on a commercial property, since your business will be affected by the appearance of overgrown grass. A mowing service will have a set schedule they will adhere to so you don’t have to worry. Weed eating and edging are important on commercial landscaping, so you will want to be sure that is included in your monthly fee.

When it comes to trees and shrubs, consider evergreens, which won’t shed leaves that have to be raked, blown, and disposed of. Consider the different shapes that you can get and form a basis of evergreens for color year round. A couple of topiary evergreens in large pots by the front door are quite attractive. No matter what climate you are in, evergreens are drought and cold hardy, compared to other plants.

Consider hardscaping options like rock or mulch for low maintenance beds. Perennial flowers and shrubs can be a great way to make flowerbeds that require little in the way of annual plantings, unless you want to add extra colors around borders, for example. When you are planting commercial flowerbeds, you have to consider the maintenance and upkeep.

If you have beds that are only for annuals, you will need to plant them every year, keep them watered, and have somebody pull weeds. For this reason, many commercial establishments are considering beds with river rock mulch, fountains, perennial, drought hardy plants, or desert-type landscaping. You can add boulders, driftwood or interesting water features like ponds or waterfalls that are simple to maintain, once they have been installed.

The newest thing in commercial landscaping is environmentally friendly plans that save water and use native plants, which are hardier to the natural growing conditions. Evergreens can be used as windbreaks on the north and east, while deciduous shade trees can be used on the south and west to cut energy bills for heating and cooling. Desert landscaping or hardscaping can save water and planting beds with plants that don’t need frequent watering is becoming more economical. In fact, that is the reason many commercial landscaping plans call for structures like gazebos, trellises or boulders to add interest.

Greenscaping is becoming popular by using these methods. Incorporating native flowering plants, shrubs and evergreens or cactus add a local touch of natural landscaping, yet are easy to maintain and environmentally friendly. When it comes to grassy areas, consider drought hardy grasses that can handle extreme temperatures like ryegrass or fescue. Making your commercial landscaping easy to maintain will save money and greenscaping saves water. You can have an interesting commercial landscape that features structures, fencing, boulders, evergreens and perennial flowering bushes that require little or no maintenance and will stay that way for many years to come with a little trimming or touch-up.