Individual investors are increasingly interested in commercial Property. The recent ups and downs of the equity market highlighted the benefits that real estate can bring in diversifying a Portfolio, and property’s stable income flow is attractive to those worried about the adequacy of their pension provisions. In response, a growing number of financial institutions and otherproduct providers are devising commercial property funds targeted at private investors.
Britain is a nation of property lovers, right? But rather than buying a residential property, how about investing in commercial property? It might be a good time to start looking at the advantages of commercial property. We as a commercial property investment company in London have listed some reasons as to why investing into commercial property is lucrative investment.
Small commercial premises are sought after by start-up businesses, especially office space. More and more people are working on a freelance basis, but they are finding that working from home is not ideal. Sharing office space is not a new concept, but it is becoming an increasingly popular way to share costs.
One thing to remember is that your tenant is the key to your success. Be flexible and offer a discount or a period of free rental in exchange for a decent refurbishment, or a shorter lease. A happy tenant is more likely to stay for the long haul.
Make Use Of Resources
Make use of websites like AppearHere.co.uk. They check your premises and then put it on their website. Prospective tenants can then check out your premises online and get in touch with you if they like what they see and the price is right.
Small industrial premises are also a good investment. People who want to start manufacturing a product on a small scale want affordable lock-up premises. As our economy improves; so will the opportunity for higher rents.
Old v New
Another route into the commercial market is to refurbish older buildings in places where commercial premises are in short supply. Some cities in the UK are desperately short of well designed, good quality office space. It does mean that you will need to invest money on the refurbishment, on top of the purchase price, but a good refurbishment will make the property more desirable and you’ll quickly reap the benefits.
The Pros And Cons
There are other benefits to owning a commercial property, rather than a residential one. Repairs and maintenance have to be carried out by the owner of a residential property, whereas, the tenant will normally be responsible under a commercial lease.
Individuals with a Self -Invested Personal Pension (SIPP) can buy commercial property, whereas residential property is excluded. But, be aware that different rules apply to commercial leases and expert legal advice is important.
Commercial property will always have its ups and downs, but if you take the time to look properly, know the area, research the market and get a good solicitor, you should be able to make a sound investment.
Thanks to Paramount Investments, a commercial investment company in London, for this guest blog.