Hello World! Welcome Friends! If you decide that you want to grow your property portfolio, you might initially think about just buying individual units. However, if the occasion arises, it might be a better investment to buy an entire building instead. Here are some of the advantages of purchasing a whole building.
A Range of Tenants
When you choose to purchase a whole building, you are going to get a much wider range of tenants than you typically would if you were just going to purchase the one unit. You will often have the option to purchase both residential and commercial buildings, with each one offering something slightly different to their investors. If you are looking for a property purchase that will offer you variety within it, purchasing a whole building is something that you should definitely consider.
For example, a commercial building like the Peace Centre offers you the chance to be the landlord of a wide range of different businesses, this can make for an incredibly interesting experience. Each one can have slightly different needs, and this will no doubt deliver some great challenges to you as a landlord. If you searching for something that can deliver this challenge as a landlord, it could be a great investment for you to make.
Choosing to purchase a whole building means that you could also inherit tenants in-situ. If they are happy to stay in place, you can let them, and you could even work out some sort of deal with them if you intend to raise the rent slightly in other units. Inheriting tenants in situ means that you are also going to be able to start collecting an income immediately, instead of having to worry about the stress of empty units and the lack of income that they generate.
Freedom to Make Changes
Every building will have common areas that everyone has access to. In a commercial building it might be the corridors between the shops, while a residential unit will have hallways but might also have communal spaces like a gym. If you were to only own a few units within a building, you would have no say in how these common areas would look, and you might simply be asked to pay your share of a bill if changes are made. When you are the building owner, however, things are a little different.
Though it might be a requirement to inform your tenants that you will be making changes to the building as you see fit, you won’t have to ask permission to do so or gain a consensus from other unit owners. So long as you have the correct permits and permissions from local government, you will be free to make changes as you see fit. In turn, this will allow you to change the communal areas and potentially modernize and improve them. If you were able to purchase an older building that is in need of some modernization, improving the common areas can make your tenants happy and will improve the outlook of the building overall.
Your Own Staff
If you only owned a portion of the building, you would have to work with other unit owners to ensure that parts of the building are taken care of. This might require you to band together and find a property management company that will look after the building as a whole. However, since you are doing this as a collective and not an individual, this might result in you working with a service that you are not particularly happy with.
Owning the building yourself gives you the freedom to choose who you wish to work with to maintain it. Instead of outsourcing the property maintenance to an external company, you could use this as an opportunity to offer employment to a group of people. Build your own tight-knit team of cleaners, handymen, and security. If you choose to purchase a residential unit, you might even find that you have tenants who are willing to do these jobs for you. You could even come up with a deal for discounted rent on top of their salary if they live in your building. There are plenty of opportunities here to become a generous employer on top of being a landlord.
Invest Today
There is no denying that purchasing a whole building will cost more and will be a lot more work than just a few units. However, if you are prepared to put the work in, you can also get a lot more back for your money. Property investors who are searching for the next step they can take should consider investing in an entire building. It is a decision that will challenge you but can pay some amazing dividends if taken on correctly.
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