The Best Place To Buy Investment Property
Yes, the economy is bad; and although it might seem off, you need to take advantage of this time to buy investment property for your retirement. True, many residential properties are selling at a loss, but the chances that youd be able to get a really good deal are really slim with the hundreds of thousands of real estate brokers out there! One more thing is that its hard to get a bank loan for residential properties.
So what now? Whats the best place to buy investment property? Its still in real estate, of course! Oddly enough, its something that most find unattainable and difficultbut the thing is that its really not! So what is it really? Its commercial real estate! Hold on, before you stop reading this article by thinking that you certainly cant afford buying commercial investments, hear me out and read on. You might just find a way out of your financial troubles!
Okay, do you know that there is a sector in commercial real estate thats recession-proof and that you can invest in it with no money down? (And no, this is not a marketing campaign for a product that you dont have any use for; this is based on hard facts and statistics!) I know youll be surprised, but its actually self storage investment that Im talking about here. here are the reasons why its the best place to buy investment property now that the economy is this bad:
Its recession-proof. Whether the economy is good or bad, the demand for self storage continues to skyrocket. How so? Because when the economy is good, what do people do? They buy more stuff than their place can accommodate! And when the economy is bad, people tend to downsize and move to a smaller place. So what happens to all their stuff? Those that wont sell and those that they cant bear to sell go to storage, naturally!
It has the lowest bank loan failure rate. At only 8%, compared to office buildings with 63%, apartment complexes with 58% and retail stores with 53%, youll definitely have less chances of failing. This is also why banks love self storage and why you have a better chance of getting your loan approved!
It has low development and operating costs. Compare the development costs of office buildings, apartment complexes and retail stores to self storage facilities. Its obvious isnt it? With the other buildings, you need to fix a lot and install many fixtures, but with storage facilities, you only need steel walls, roofs and doors and youre all set! Plus, statistics show that other sectors of real estate operates between $3.50-5.00 per square foot, while self storage is way below with just $2.75-3.25 square foot!
These three reasons alone show how self storage investment has a very low risk. Added to this is the fact that because the taxes, insurance, and utilities of self storage are lower than any other property class, it is not subject to large increases. This means that you wont have to worry about the government increasing your payables while you cant even increase your rent!
So what now? Whats the best place to buy investment property? Its still in real estate, of course! Oddly enough, its something that most find unattainable and difficultbut the thing is that its really not! So what is it really? Its commercial real estate! Hold on, before you stop reading this article by thinking that you certainly cant afford buying commercial investments, hear me out and read on. You might just find a way out of your financial troubles!
Okay, do you know that there is a sector in commercial real estate thats recession-proof and that you can invest in it with no money down? (And no, this is not a marketing campaign for a product that you dont have any use for; this is based on hard facts and statistics!) I know youll be surprised, but its actually self storage investment that Im talking about here. here are the reasons why its the best place to buy investment property now that the economy is this bad:
Its recession-proof. Whether the economy is good or bad, the demand for self storage continues to skyrocket. How so? Because when the economy is good, what do people do? They buy more stuff than their place can accommodate! And when the economy is bad, people tend to downsize and move to a smaller place. So what happens to all their stuff? Those that wont sell and those that they cant bear to sell go to storage, naturally!
It has the lowest bank loan failure rate. At only 8%, compared to office buildings with 63%, apartment complexes with 58% and retail stores with 53%, youll definitely have less chances of failing. This is also why banks love self storage and why you have a better chance of getting your loan approved!
It has low development and operating costs. Compare the development costs of office buildings, apartment complexes and retail stores to self storage facilities. Its obvious isnt it? With the other buildings, you need to fix a lot and install many fixtures, but with storage facilities, you only need steel walls, roofs and doors and youre all set! Plus, statistics show that other sectors of real estate operates between $3.50-5.00 per square foot, while self storage is way below with just $2.75-3.25 square foot!
These three reasons alone show how self storage investment has a very low risk. Added to this is the fact that because the taxes, insurance, and utilities of self storage are lower than any other property class, it is not subject to large increases. This means that you wont have to worry about the government increasing your payables while you cant even increase your rent!
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