You may consider purchasing a commercial property as an investment. There are several things you should keep in mind as you begin your search.
You may prefer to leave real estate to your family because it can provide them with income later on. According to Realty Biz News, you should consider whether a particular commercial property is a good investment. Some lenders may ask you to use your personal assets as collateral. This could affect your ability to leave these assets to your heirs. If you or your beneficiaries are unable to make payments on the property, your family might lose access to some of the resources they need.
Additionally, you should consider how much work you will need to put into a property. Some may be ready to lease out. However, others could need renovation. Some properties might need minor work, such as new carpeting, while others could require new plumbing and electrical wiring.
As you decide which property to buy, you should ask a commercial contractor how much a renovation might cost. This can help you decide if a property is a good investment for your situation.
According to the U.S. Chamber of Commerce, commercial properties have different classifications. You need to consider this because the categorization determines what kind of business can occupy the space. You may want to rent the space for offices, for example. A Class C building may need more work than a Class A space.
A potential lessee might want to use space in your property as both office and retail space. However, the building classification may not allow this. Knowing the categorization helps you understand who your future lessees are.
You may want to consult with a professional to make sure that a commercial property fits both your investment and estate planning goals.