Where To Invest – Residential Or Commercial Properties?
Ian Filippini Santa Barbara
Ian Filippini website knows the idea of buying commercial property itself is really exciting! Commercial properties like offices, buildings, and industrial spaces offer great value for money, and might even turn out to be comparatively more profitable than residential properties. However, investing is all about sowing now and reaping later. Do you think buying a commercial property really helps you accomplish your investment goals?
If you are looking to purchase commercial or residential properties, be sure to contact Ian Filippini from Filippini Wealth Management in Santa Barbara for sound financial advice.
However, this does not mean that you shouldn’t be checking out any commercial properties. Today’s economic trends prove beneficial for those with a diverse portfolio of investment properties. But if you have to choose between residential and commercial properties, here are some reasons why you should go for residential:
Segmented Liquidity
When you purchase a huge commercial property, you only have two choices – to sell it, or to sit on it a few years till the prices rise in your favor. On the other hand, if you own a diverse portfolio of residential properties, you always have the choice to keep some and sell some if needed. This is what is called a diversely segmented liquidation strategy.
As an expert in real estate investment, Ian Filippini explains that it takes different numbers of days in each market to sell different types of properties, and ending up with a chunk of residential property is not what you want; rather you should be focusing on diversifying your portfolio. Diversify your portfolio by buying different residential properties in different markets, so that you have an easy exit strategy.
Geographic Considerations
If you are a real estate investor, you might know that buying a large residential property like an office building or a mall, gives you a major stake in the entire commercial area. So if the market around you doesn’t perform so well, chances are you won’t be making much profit from your commercial property investment either.
On the other hand, you can diversify your portfolio with a number of small residential properties across the map, so that if one market fails to perform, you only get to bear a minimal loss and your overall portfolio stays comparatively consistent.
Virtualization Of Offices And Retail Stores
A large number of offices are focusing on digitizing their procedures to cut down the overheads. This is in not only Santa Barbara, but all around the world. Ian Filippini from Filippini Wealth Management explains that introduction of cloud computing, the virtualization of retail stores, and the large number of corporations point to the fact that physical locations like stores, buildings, and offices are going to witness a gradual decrease in demand.
On the contrary, we have residential properties and there is an inevitable, ever growing need for residential units.
Increase In Rental Demand For Single-Family Units
Just like the way offices are cutting down on physical locations, the same way, rental demand for single-family homes is increasing. All of it points to the basics of economics, says Ian Filippini – it is the simple demand and supply rule. Houses are shelters for families and unlike offices and corporations; there is no virtualization for residential properties.
In the recent economic trends, a large number of homeowners have been selling their properties on a short notice, and falling back into the rental market. Now most of them are not qualified to buy residential properties, so they rent. They prefer to rent single-family residential units over apartments as they were previously living in houses. This plays an important role in making your residential investment portfolio strong and profitable in the end.
Ian Filippini from Filippini Wealth Management in Santa Barbara is among the top wealth management advisors here and he strongly suggests analyzing the current economic trends before making investment decisions. Moreover, it makes sense to consider the reasonably strong advantages of residential investment properties over commercial.
The secret behind creating a powerful and profitable investment portfolio is diversification, given that it is done the right way. Commercial properties depict a falling demand, as according to the recent trends of technology and virtualization a large number of corporations are looking forward to minimizing overheads. On the other hand, the economic downfall in the past left homeowners selling their homes to end up in the rental market again, this fueled the demand for rental properties.
Call Ian Filippini today for the best wealth management advice in Santa Barbara! The professionals at Filippini Wealth Management are highly skilled and courteous, and they don’t hesitate to conduct one-on-one meetings to give you a better idea of the best options you have.
