Revolutionize Your Wealth Using Commercial Real Estate Tactics
Financial Benefits and Earning Potential
The financial incentives of investing in commercial real estate are considerable. Besides rental income, investors benefit from property appreciation and tax advantages. Depreciation, for example, allows you to deduct a portion of the property's value from your taxable income each year, effectively lowering your tax liability. Additionally, interest on loans used to purchase or improve properties is often tax-deductible, further enhancing your investment's profitability.
Moreover, the earning potential in commercial real estate is substantial. According to CBRE, the average annual return on commercial properties ranges from 6% to 12%, depending on the property type and location2. This is significantly higher than the average return on residential properties, which typically hovers around 3% to 4%3.