- Commercial properties attract business water and electricity charges
- Commercial property offers higher returns than residential property
- Pre-leased property would be more advantageous
Why will cash outflows change?
Once the property is put into commercial use, you will need to pay commercial charges for water and electricity supply. These fees would depend on the size of the area and the nature of the business.
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Therefore, Gulam Zia advised investors to be cautious before taking the plunge. One should make sure that they are getting the right return on investment before investing in the asset as it does not offer easy liquidity.
It should be noted that certain commercial activities are exempt from commercial property fees such as tuition fees, yoga classes, etc.
If you are one of those who are still interested in buying a commercial property, Gulam Zia suggested buying a pre-leased commercial property. This will help you reduce marketing expenses that are usually borne by the landlord and buy a pre-lease whose lease is about to end. This will give you the opportunity to renegotiate the rent on your terms.