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When you find yourself with money that you would like to invest, there are a number of different markets where you could look to invest that money. One of the safest and also one of the investments that generates the most wealth is property investment. There are a number of different ways that people are able to get into property investment as they can buy a cheap house, renovate it and sell it on for a profit, they can buy a property and rent it out for more than the mortgage price, or they could look towards commercial property.
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Are you interested in buying property from probate or repossessions? If YES, Click here Contact Hello, Sign in Register Property Classifieds The Home Of UK Property Resources Home / Blog / Commercial Property Prices Update in 2023 in the United Kingdom Back to search results Search Website Blog LIKE Print Posted on 21/11/2022 in For Investors by Property Classifieds Press Keyword (Optional) Select Category Commercial Property Prices Update in 2023 in the United Kingdom Search Now Share This Page
When you find yourself with money that you would like to invest, there are a number of different markets where you could look to invest that money. One of the safest and also one of the investments that generates the most wealth is property investment. There are a number of different ways that people are able to get into property investment as they can buy a cheap house, renovate it and sell it on for a profit, they can buy a property and rent it out for more than the mortgage price, or they could look towards commercial property. What is Commercial Property Investment? Commercial property investment is different to investing in residential property. There are a number of different forms that it can take but it essentially means you are purchasing property which is used for corporate purposes as opposed to residential. There are a mix of different properties you could purchase when looking towards corporate investment, such as offices, schools, airports, leisure centres and warehouses. Essentially, you would buy your property and then rent it out to different organisations who would pay you monthly to conduct business there. The Benefits of Commercial Property Investment So, why should you invest in commercial property rather than residential? The benefits include but are not limited to: 1. Income Yields Are Higher You tend to find that people can make more money on commercial properties. That being said, these properties also can be more expensive and there are greater periods of someone not being in the property too. The risk and reward are certainly reflective of one another so if you are interested in potentially seeing more of a return on investment, commercial property is certainly the better option. 2. More Potential for Capital Growth This is based on the income growth and then also on other measurable factors too. With capital growth potential, you usually find that commercial properties are valued on the basis of potential returns, meaning the growth is larger. Other factors that will be considered within the valuation include the likes of the current state of the economy, interest rates and also how commercially successful the area you’re in is. 3. Income is More Stable and Consistent Once you have people renting your property off you, the income you will receive is a lot more stable and consistent. You can get away with charging longer leases given you are letting large businesses enter your property (when you are renting a residential property, you are normally capped at around 12 months). The norm for commercial property leases are between 3 and 10 years, so once you have someone in there, you can benefit from that income for a long time. 4. Maintenance is Taken Care Of When you rent a residential property, you will be expected to pay for all of the costs of maintenance. When you rent a commercial property, the responsibility imposed on you for maintenance costs is less, this means that you have potential for even more profit as a result. 5. Tenants are More Reliable You often hear stories about some of the awful tenants that a lot of people who have invested in residential property come across, but this isn’t generally the case within the world of residential property. This is because the tenants that you have within your residential property are going to be making profit from renting off of you and they will want to keep it that way. As such, it is a lot less likely that you will encounter “nightmare tenants” when someone rents a property off you. The Current Price of Commercial Property If you are hoping to invest in commercial property then now is a good time to do so as the buying price of such properties is dipping. There have been a number of different shifts throughout the real estate industry as a result of the pandemic and the current cost of living crisis and this ongoing uncertainty means that the prices of commercial property are lower. Just because prices are dipping though does not mean that there aren’t things commercial property owners can do to emerge from this uncertainty in a stronger position. For instance, if they take the time to make informed and innovative plans surrounding investors, regulators and tenants then the uncertainty should not be much of an issue. It is always worth consulting with experts about the above as they will be able to point you in the direction of the right form of investment and whether or not you will be able to benefit from buying commercial properties in the current economic climate.
Types of Commercial Property Investment There are a number of different types of commercial property investment. These include: 1. Land Investment If you invest in raw land then a lot of investors who understand the market could be very tempted by it. You can make money from farmland or you could build on top of it as well, either way there are a number of different means by which you could make money. 2. Shares in Commercial Property If you don’t have enough money to invest solely in commercial property then you could instead invest in commercial property shares. This is where you buy a section of the commercial property and then receive a percentage of the profits made from that investment. 3. Storage Units These may not sound like the most glamourous option but they can be a great way to make money. There isn’t much upkeep in these units as you can just purchase it and then rent it out to anyone who needs the space. It’s a very effective way to make money from commercial property. Do You Need Help Buying Commercial Property? If you need assistance purchasing commercial property or working out whether commercial property investment is right for you, you should consider speaking to Property Classified. Our team of experts will be able to review your current situation and then point you in the right direction. If you would like any help or need any further information then don’t hesitate to get in touch. Sign up today We’ll keep you in the loop of all the new exciting opportunities. Join Our Newsletter - Today The Property Website That Allows You To Sell Your Home Fast To Investors For The Best Cash Price Website Support Partnerships Sell House Fast Property Investments FAQ Blog Terms of Use Privacy Policy Password Retrieval Contact Us Site Map Estate Agents - Advertise Properties FREE The result is a quick house sale for homeowners & property sourcing at it's best for investors. We can also recommend the best local estate agents if you want to put your property on the open market. © 2022 Property Classifieds Limited. All Rights Reserved.
