A wide choice with many advantages... Before venturing into a commercial real estate investment, you must take into account the criteria to choose the right location.

Location: a priority for good placement

Investing in commercial real estate is specific. Prices are not calculated in the same way as for housing; expectations are not the same depending on the business sector of the trade. The location and the city chosen will therefore have their importance on the amount of your investment.

The most favorable locations are located on the main shopping streets, squares... Business premises exposed on the sunniest side of the street will sell for more but will also provide a better return and greater demand.

If your location is sought after by traders, you will also re-let the property more easily and the capital gain on the resale is likely to be significant. The only drawback is that the profitability may be lower for the simple reason that the risk is lower and the return is lower. This rule applies to any investment: profitability rewards risk.

The choice of the location of your investment will be essential. The more popular it will be (often located on major arteries, close to transport, frequented, etc.), the more security it will offer you, just as it will offer security to the tenant. Its turnover is favorably ensured by an optimal location, your rent too.

Buy empty or occupied.

Investing in occupied premises gives you the advantage of knowing the rent and, therefore, the rental yield. By investing in occupied premises, you avoid the hassle of managing the search for a tenant.

In addition, if the merchant is already present and his activity generates a suitable turnover, this confirms the qualities of the location. Finally, if its commercial activity is good, you have less to worry about paying your rent.

On the contrary, if you decide to buy empty, you will need to check that the estimated rent is in line with the market values currently practiced for premises with similar characteristics.

Taxation of investment in commercial premises

Income from commercial premises is taxed under the property income regime, just like empty rented accommodation. When you make your declaration, you can therefore deduct charges and work from the rent. Finally, it is also possible for you to create land deficits that are charged to your land income. Any surplus and loan interest is deducted from land income for the following ten years. This mechanism allows you to lower your tax base and therefore pay less tax. If you already have a rental property portfolio, you can thus optimize your property taxation.

In view of these specificities, certain difficulties arise when choosing to invest in commercial real estate. That is why you should rely on a professional Commercial real estate broker in Westchester county, allowing you to avoid the risks of such an investment while benefiting from a better return.

Rely on Nurealty Advisors experts for investing in commercial real estate

Commercial real estate is an eclectic and complex field. Therefore, you should rely on professional commercial real estate companies like Nurealty Advisors. Nurealty Advisors is much more than a real estate agency dedicated to transactions alone... real estate professionals wish to defend your interests upstream, during, and downstream of your projects in your advising on the best strategies to adopt!