Investing in Commercial Property Guide

Introduction to commercial property  

We, as a nation absolutely love the idea of owning their own properties. Many see owning a home as a huge, personal achievement but have you ever considered the idea of investing in a commercial property?

The types of property available  

The commercial property market mainly consists of shops, supermarkets, factories, warehouses, and offices. You may think that finding and investing in the right property for you is time-consuming and difficult, however, some of the steps are very similar to those of buying a flat or house.

Researching the market  

Spending time researching is the very first step. Take a look at the buying market and spot the trends. Investing when the prices are sky high isn’t ideal, so it may be worth waiting until the prices start falling. Look at the types of property available and study the mortgages that are currently being offered by lenders. The location of the property plays an important part in your decision as well as the size of the office or building you’re looking to invest in.

When you’ve found the right property, you need to decide if you’d like to invest directly or indirectly through a fund. A direct investment ensures that you purchase the actual asset yourself. If you’re new to the world of investment, it may be worth considering a collective investment in order to break your way into this highly competitive industry.

Commercial properties are categorized as being tertiary, primary or secondary properties, depending on their value. Prime property is the most high-quality and valuable property that is available. Both secondary and tertiary properties are usually found in less favourable areas but are still interesting and attractive to many investors.

Considerations when investing

 When taking the leap to invest in property, there are a number of things to consider. If a property has been left empty for a while, then you’ll need to have some disposable cash to be able to revamp the asset. This may take some time which can also harm your cash flow – an empty site will not generate instant money. Finding tenants to rent your property can also take time. They need to be trustworthy, so making sure you have a guarantor in place for your tenant is extremely important. When researching the right property for you, it’s worth working with a specialist firm that has your best interests at heart and are keen to help and to point you towards the right asset for you.