Bitcoin is the current rage in investing. This hard to understand investment has soared this year by hundreds of percent, leaving those who got in early extremely happy about their investment choice and those who are sitting on the sidelines anxious about whether they should get in now or risk missing out on the continued price rises.
Right behind the Bitcoin phenomenon is the stock market. It is in new high territory and with the recent passing of a bill to lower corporate taxes, it looks as if the market will keep rising through 2018.
These investments have great potential and have currently overshadowed many other great investments. Since money can only be spent once, they are taking money from other investment areas.
But it is important to note that both stocks and Bitcoin can be wildly volatile. We have seen Bitcoin swings of more than 20% on some days and the stock market has had drops of 40% at times leaving investments in tatters. For this reason, one needs to have a strong stomach and also consider investment that may not be as sexy, but that perform very well over time and do not have the heart-stopping drops like stock and Bitcoin.
One such investment is commercial real estate. What most people do not realize is that this investment has been more profitable than any other investment over time and that commercial real estate have made more millionaires that any other type of investment.
Here are some reasons to look at commercial real estate as a great option for parking your money:
Tangible Asset
Unlike stocks and Bitcoin, commercial real estate provides you with a concrete asset that you can see and touch. Many commercial real estate investors actually have their offices in the buildings they own so they know their investment intimately and can tell when something might be going wrong with the investment. When you invest in a stock or Bitcoin, you are a slave to the market or other really large investors who might manipulate the market for these investments. In the end, you too often are hoping things work out for you without knowing if they will or even the reasons why they will.
Stable and Secure
Whenever you consider an investment, you need to focus on why the need for the product will sustain over time. With commercial real estate, the reasons are simple, it provides a product that is constantly needed in all areas of the country. When the economy is growing people will look to start more businesses and the need for commercial real estate increases and when the economy is not growing, the government will push agendas aimed at getting things going again. Most of these will be in stimulating small business growth and so here again commercial real estate remains in high demand. There are times when in certain cities, a commercial reals estate market can fail, but typically, this does not remain the case. But one should understand clearly any market they seek to purchase commercial real estate to know if that market is the right place to invest.
Proven Appreciation
No asset has a comparable for appreciation as commercial real estate. Yes there are some years the stock market or other investments for exceed the returns for commercial real estate but over a ten year period, commercial real estate will surpass any investment for consistent positive returns.
Commercial real estate is one of the few investments that have proven profitable over time. It should be a core part of any investment portfolio.