Most people squander their youth life and even their adult life, not knowing that they are wasting a chance to secure their old age financially. They have education, a well paying job, family and a happy one in fact, but they fail to understand the importance of empowering their financial life after retirement. You might want to open your eyes to investment before it’s too late.
As young as you are, being wise is investing in real estate. The returns from this investment are high, having a low chance of risks that it outranks other types of investment in Kenya. Have in mind that as the demand for real estate properties increases, the supply in Kenya is still low hence high prices. This may mean bad news to buyers but good news to anyone that may want to invest. Why? Because of the high prices of properties, investors make more profits which can be used to develop more properties hence bigger profits.
Commercial land is any piece of land that is used for business purposes or intended to create profit. At most, commercial lands are used for business purposes such as supporting warehouses, retail stores, malls, hotels, medical centres, office buildings and many other businesses.
Commercial lands or properties are very different from residential properties. Commercial land has higher investment returns than residential property investment. In contradiction to residential properties, the value of commercial properties tend to fluctuate depending on the location of land, the number and type of commercial activities in the area, development of infrastructure and also availability of amenities on the land.
Why invest in a commercial property
Commercial land investment is one of the highest sources of income. It is characterised by its ability to produce regular cash distributions, unlike other investments that pay in dividends. This is a motivation for investors to be patient through economic knockdown since commercial lands don’t depend on the sale of assets to get income.
investing in commercial land is cheap to own property for a long term investment. It is one of the safest ways to secure your money and get profit. This is supported by the fact that you will not be required to pay high insurance fees or even pay for utilities. Also, most of these properties are not paid fully by cash but by payments plans. You will be allowed to make cash downs of 20%-30% and then the rest can be paid using a mortgage. This is the reason why commercial land investment has continued being an outstanding investment over the years.
Unlike residential properties, the commercial investment allows you to have peace of mind. There is a little physical engagement needed to add the value of the land. This offers you the certainty to sit and relax at the comfort of your home, knowing your investment is safe for your future. This means you don’t have to worry about the value declining, people breaking into the land or items being stolen. If anything, you are waiting for great returns.
Also, commercial lands are a guarantee for future investment in the sense that it can earn you financing for other businesses that you have. An example is when you want to build an apartment on the same piece of land but you need financing. This would be very easy since you can use the title deed of the land as a guarantee for the bank financing.
Finally, commercial lands are very valuable resources that exist in limited quantities. Investing in a commercial land right now will earn you very huge returns by the time you get old. Having the ability to identify future hot areas and investing in commercial lands in the area can earn you the biggest income of your life.