COMMERCIAL
Expanding on the benefits of this type of investment for small businesses , Govender emphasises the importance of building a diversified investment portfolio . The risk that comes with certain financial vehicles can be balanced out by an investment into property across a range of categories , such as retail , factory space , hospitality and wholesale .
In diversifying your portfolio as an SME owner , you can position assets like property as a buffer in times of economic turbulence , which as Govender asserts , has become increasingly important within the current geopolitical and economic context . strategies with the potential to sell the commercial property in the future and realise a profit which can be plugged back into the business ’ operations .
Larger capital could also allow small business owners to access a wider range of refinancing options on future loans for more properties or business growth strategies . In these cases , having a commercial property as collateral may work in the favour of SME owners who are looking to win the confidence of financiers .
Income now , capital later The financial benefits of investing in commercial property includes positive implications for both the “ now ” ( in the form of rental income ) and the “ later ” ( in terms of capital growth ).
As Govender explains : “ The fact that owning an asset whose worth will grow over time is what makes this class of investment attractive to entrepreneurs , especially those who align their business growth
107 MAY / JUNE 2023 SA Real Estate Investor Magazine