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Commercial Real Estate as an Alternative to Residential Rentals

Real Estate Investing: Commercial Real Estate

International professionals generally prefer real estate as a core investment holding. While most already own at least one residential property, many are unaware of the benefits of owning commercial real estate — like shopping centers and office buildings. In this video, we discuss the advantages to adding commercial real estate to your investment holdings.

 

Key topics to be addressed:
• Real estate as a stable income producing investment
• Types of commercial real estate investments
• Understanding the main benefits of owning commercial property
• How commercial real estate investments work for a cross border person

 

Transcription:

Hello and welcome to Worldview’s cross-border wealth series. In this video we’re going to discuss commercial real estate as an alternative to residential rentals. In the last video we talked about the positives and negatives of owning rental real estate outside the US. Now I want to discuss directly owning commercial real estate and how that also can be a smart investment

for cross-border families.

 

Many of our clients, generally, are from outside the US. They tend to have a very strong preference for real estate over stocks and bonds. We agree. We think real estate is a fantastic long-term investment in tends to provide more stability and insulation from the volatility the investment markets.

 

Now the dilemma for most international people is they already tend to own a number of residential rental properties, either here in the US or often in their home country, and they don’t generally have the time or energy to buy and manage more properties. Because it is this we recommend clients also consider direct investments in large, high quality commercial real estate properties; usually with other investors in a professionally managed partnership.

 

The types of properties that I’m talking about would include retail shopping centers, multi-tenant apartment buildings, office buildings and other industrial buildings. Some of the advantages of commercial real estate include the ability to have direct ownership in properties but with professional management which is afforded by often the larger size and scale of the properties. They tend to have very durable income with an embedded tax shelter as a result of the IRS tax laws about depreciation of property. They tend to have very strong preservation of capital and offer investment growth and inflation protection.

 

Finally commercial real estate ownership for cross-border families can work extremely well and this is even the case even after you’ve left the US and even if you give up your US residency and become a non-resident alien. The tax rules make it very advantageous. So that’s all. Thank you very much.