Grab RSS FeedThe topic of investing in real estate is commonly encountered when people consider their financial plan. A typical question is whether to own commercial or residential rental property.
The second real estate investment often considered, after owning your own home, is whether or not to own an office housing a family business.
Here, the investment usually works out well. As long as ownership costs are not substantially more than just renting the space, a long term business owning its own real estate may turn out to be a good economic choice. Risks of doing so involve a deteriorating business environment due to changes in the market, or choosing a building much larger than the business needs and expecting to be able to rent out the rest.
Finally, owning commercial or residential real estate for rental purposes is an investment choice. As a blanket statement, some families that do so are not always happy with the results. It is work to own and manage rental properties (residential more so than commercial). Real estate is not liquid and has carrying costs that are substantial, even if it sits empty. Without going into more detail, this should be a very careful discussion with your advisor or real estate attorney before venturing into this investment choice.
For more information contact Black and Buono.
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