Santa Clarita Commercial Real Estate Investments Why Invest
Izvor: KiWi
In the last few years the commercial real estate has been experiencing a vast change. During the economic downturn it was considered to be a buyer's market. However, that view is changing with the financial recovery that is taking place throughout the US. It is quickly changing now to the seller's market and property prices are steadily rising. No matter how the commercial real estate market changes from year to year, the fact remains that real estate investment firms should be represented by the best brokerage representatives. Both domestic and international real estate investment firms need to understand and follow all California commercial real estate laws. Non-compliance can mean stiff fines and/or litigation which are not desirable situations for anyone involved.
If you are in the market for Santa Clarita commercial real estate, you should do some research before you make any commitments. If you are shopping for bargain priced property to purchase, be sure to check into the condition of the property and to make sure there are no legal obligations connected. If a deal seems too good to be true, you need to find out the reason behind the offer. It is a good idea to consult with an experienced attorney that specializes in this area so you will have someone to guide you when questions arise regarding your purchase.
The commercial real estate market fluctuates constantly and real estate investment firms must always be ready to evolve. California commercial real estate laws that govern the transactions can also be changing and evolving to meet the current needs of the residents of the state.
A bargain isn't a bargain if it doesn't fit your present and ongoing needs. If you do not foresee owning the property for at least five years you may want to see if you can set up a lease agreement instead of purchasing. My best advice is to find a real estate agent who is experienced in dealing with Santa Clarita commercial real estate. Santa Clarita commercial real estate agents will have knowledge of office space, retail locations and investment properties that are on the market in the area.
Before purchasing or leasing, you should visit the area several times at different times of the day. This will help give you an idea if the area will be right for your needs. Planning your purchase can help you find Santa Clarita commercial real estate that will appreciate in the future.
A little extra note: Even with angel investors in your corner, you or your investor will have to have an investment in the project. They call it ‘Having skin in the game’. So if you are serious about getting involved in commercial real estate investing or scouting, you will need a very strong commitment, this is not something you can do from the comfort of your couch. So get out there and get into the action.
While all those people in the growing population will indeed need places to live, they will also need places to shop, have their hair done, buy cars, and for any number of other services that they expect these days. That means commercial ventures that are going to serve this growing population are going to need commercial real estate to work from. If you are a part of a real estate REIT that owns that property you can have a tenant that is paying you profits for years and years to come.
Whether it is better to lease or buy land will be determined by each state's legal and economic systems. In those countries where acquiring title is complicated, the state imposes high taxes on owners, transaction costs are high, and finance is difficult to obtain, leasing will be the norm. But, freely available credit at low interest rates with minimal tax disadvantages and low transaction costs will encourage land ownership. Whatever the system, most adult consumers have, at some point in their lives, been party to a real estate lease which can be as short as a week, as long as 999 years, or perpetual (only a few states permit ownership to be alienated indefinitely). For commercial property, whether there is a depreciation allowance depends on the local state taxation system. If a lease is created for a term of, say, ten years, the monthly or quarterly rent is a fixed cost during the term. The term of years may have an asset value for balance sheet purposes and, as the term expires, that value depreciates. However, the apportionment of relief as between business expense and depreciating asset is for each state to make (all that is certain is that the lessee cannot have a double allowance).
