COMMERCIAL PROPERTY INVESTMENTS
Start your property portfolio today
COMMERCIAL PROPERTY INVESTMENTS
Start your property portfolio today
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
WHAT ARE COMMERCIAL PROPERTY INVESTMENTS
While commercial properties typically cost more than residential properties to buy, they do in most cases provide a healthier return.
BENEFITS OF INVESTING IN UK COMMERCIAL PROPERTY
Initially, commercial property often requires more of a monetary investment, as the properties are typically more expensive than residential ones. There are however some great benefits to investing in commercial property, some of which include:
- There are many funding options
- Increased security, due to the lengthier lease
- Usually VAT exempt
- If the property is under £150,000 you don’t have to pay stamp duty
Start your property journey today
Start your property journey today
WHAT TO CONSIDER WHEN INVESTING IN COMMERCIAL PROPERTY
This is of course one of the most important factors when coming to buy any property, however maybe even more so with commercial. You need to determine whether the area is going to be attractive for businesses, is it in a city centre, close to transport links for employees, are there lots of local amenity options? Location is everything when it comes to achieving the best potential yield.
You need to keep an eye and research the commercial property market, look at how quickly things are selling in the area, if there selling for market value and also take a look at the commercial rental market – although it’s not a hugely volatile sector.
The strength of the tenant and the lease can have a large effect on the value of the property. It’s often referred to as Covenant Strength and is used to determine the quality and strength of the commercial tenant. Before agreeing any lease deal with potential tenants, do your due diligence on their assets and reliability.
Commercial property generally takes a lot longer to sell than any other residential property investments, so this is something that you should be aware of to form part of your exit strategy.
ADVANTAGES AND DISADVANTAGES OF COMMERCIAL PROPERTY INVESTMENT
As with any investment there are both advantages and disadvantages that come with that, as after all it’s a financial risk. We’ve detailed a few of the main ones for you below:
Advantages of commercial property investment
- Provides a steady stream of income
- Diversification spreads the risk
- Capital growth
- B2B relationship with your tenant
- Limited hours of operation could mean less hands on work
Disadvantages of commercial property investment
- Bigger initial investment so increased risk
- Often professional help is required for maintenance
- Bigger time commitment
EXAMPLES OF PROPERTY INVESTMENTS
Have we got your interest? Well, how do you know that we’re going to provide great deals? Just take a look at some of our recent sales in the area, they speak for themselves!
Want to see more of our deals? Check out our recent deals.
Buy Refurbish Rent Refinance
Scunthorpe, DN16
House, Semi-detached Freehold
25% BMV
Yield
8.3%
- Freehold
- Driveway
- Rear garden
- Close to local amenities and transport links
- Could achieve £700 – £750 pcm
- Vacant upon completion
Buy Refurbish Rent Refinance
Scunthorpe, DN16
House, Semi-detached Freehold
25% BMV
Yield
8.3%
- Freehold
- Driveway
- Rear garden
- Close to local amenities and transport links
- Could achieve £700 – £750 pcm
- Vacant upon completion
AirBnB
Bakewell, DE45
House, Terrace Freehold
22.1% BMV
Yield
15.2%
- Freehold
- Grade II listed
- £51,000 per annum gross rental
- £200 nightly average
- 70% predicted occupancy
- RICS £420,000 in current condition
AirBnB
Bakewell, DE45
House, Terrace Freehold
22.1% BMV
Yield
15.2%
- Freehold
- Grade II listed
- £51,000 per annum gross rental
- £200 nightly average
- 70% predicted occupancy
- RICS £420,000 in current condition
Refurb to Flip
Tadley, RG26
Bungalow, Detached Freehold
45% BMV
Exit Profit
20%
- Freehold
- Refurb opportunity
- RICS value £300,000
- Strong demand from owner occupier
- Great transport links
- 50 Miles from London
Refurb to Flip
Tadley, RG26
Bungalow, Detached Freehold
45% BMV
Exit Profit
20%
- Freehold
- Refurb opportunity
- RICS value £300,000
- Strong demand from owner occupier
- Great transport links
- 50 Miles from London
Buy To Let
Bradford, BD12 7DE
House, Terraced Freehold
24.3% BMV
Yield
10.8%
- Freehold
- 4.1 Miles to Bradford City Centre.
- 1.5 Miles to M606 & M62.
Buy To Let
Bradford, BD12 7DE
House, Terraced Freehold
24.3% BMV
Yield
10.8%
- Freehold
- 4.1 Miles to Bradford City Centre.
- 1.5 Miles to M606 & M62.
Start your property journey today
Start your property journey today
COMMERCIAL PROPERTY INVESTMENT TIPS
We’ve rounded together some of the best tips to help ensure that you invest in a commercial property that’s right for you.
We’ve described the types of property, but you also need to know what sub-types of businesses that it might attract. Industrial is limited to warehouses and factories, which may only attract larger companies, whereas leisure might attract restaurant owners or pubs.
Set your budget and stick to it, always be sure to include your hidden costs list repairs, stamp duty, operation and maintenance fees etc. You also need to understand the return you expect, you should really look for a minimum 10% cash return.
We’ve touched on this, but commercial property location is so important! You need to think about the type of business the property might attract and what they might need such as central locations, shops, etc.
We’ll always try and guide you in the right direction, providing you with all the information, however we always stress that you should do your own research on the area and the local market. Dig into available mortgages, rental values, recent commercial property sales in the area, and even labourer rates to get a much better idea of the quality of the investment.
Stamp duty is slightly different to a residential property and is generally a lower rate. For the first £150,000 you have a 0% rate, but when you get up to £150,001 to £250,000 this jumps to 2%, and there’s a jump to 5% for properties over £250,000.
If you’re looking into commercial property, we’ve talked about the different types you have available to you, however it’s always advised that you pick a property that could potentially attract multiple businesses, like an office for instance. If a property is built for a specific purpose or business type, it might be harder to attract tenants.
Is it worth it? It’s not risk free, and this completely depends on how much you are willing to risk for what return, but you should always try and maximise your yield, of course.
There are certain reliefs and allowances for commercial property:
- Capital Allowance: Under the Capital Allowances Act this is the amount of expenditure a business can claim against taxable profits.
- BPRA (Business Premises Renovation Allowance): An 100% tax allowance for certain spending to renovate business premises is sometimes available.
- Land Remediation Relief: An 100% reduction and further 50% for qualifying expenditure incurred by companies in cleaning up land which has been acquired in a contaminated state.
Commercial properties are often large, and the bills for repairs can be quite expensive, depending what you buy of course. Keeping that in mind, we would always recommend getting a full structural survey to pick up any issues before purchasing.
TYPES OF COMMERCIAL PROPERTIES TO INVEST IN
Hospitality
Hospitality properties like hotels, resorts and restaurants attract property investors due to their high potential returns, diversification, value adding potential and tax advantages.
Healthcare
Healthcare properties are popular amongst property investors due to their stable demand, long leases, strong tenants, the fact they are recession-resilient and they have serious growth potential.
Industrial
Industrial properties are very diverse and allow for a range of tenants. They are in high demand, especially in large UK cities. They can provide stable rental income and higher rental yields.
Land Developments
Land developments hold appeal for property investors for a few reasons, although it’s important to note they can be higher-risk ventures. Land developments have a high profit potential all while allowing long-term appreciation.
Leisure
Leisure properties, which encompasses hospitality properties and also amusement parks, leisure facilities and more, attract investors due to their strong seasonal demand and potential for experience economic growth.
Mixed Use Properties
Mixed-use properties, combing residential, commercial and sometimes even hospitality elements in one development, have become increasingly popular with investors due to their diversified income streams.
Office Space
Office spaces and properties have long been a popular property investment due to their high occupancy rates, potential for rent increases and lower management intensity.
Retail Space
Retail properties, encompassing stores, shopping centres, and malls, can be attractive investments for some. THis is due to the high visisbility and foot traffic, long-term leases and potential for rent increases.
OUR LOCATIONS
Thinking of buying a BMV property, but have a specific area in mind? To give you an understanding of just how broad your property choice is, here’s the areas where we most regularly buy BMV property…
COMMERCIAL PROPERTY INVESTMENT FAQS
Have you got a question about investing in commercial property that we haven’t answered?
If neither of these Frequently Asked Questions seem to answer your questions, feel free to reach out to one of our team!
Over short time periods property prices do fluctuate, but generally speaking over a longer amount of time, as long as you hold the property for a significant amount of time, you’re likely to make a profit.
Generally speaking they are at a higher cost so naturally there is more risk involved than with a residential property.
It really depends on what you favour, there’s no right answer to this. In both types of property it is about maximising your overall return, and both of which can be just as profitable as the other.
That’s why we’re here! We can source you the best commercial deals available.
WHY SHOULD YOU INVEST WITH US?
Through our team’s expertise in Below Market Value properties, we find deals that offer significant discounts you wouldn’t find on your own. This translates to a faster growing portfolio and smarter investments.
We handle the nitty-gritty, ensuring a quick and hassle-free purchase process for you.
Our team’s dedication goes beyond the purchase. We build lasting relationships with our investors, ensuring you’re never just a number.
Invest smarter not harder, as we aim to help you invest in success.
WHY SHOULD YOU INVEST WITH US?
Through our team’s expertise in Below Market Value properties, we find deals that offer significant discounts you wouldn’t find on your own. This translates to a faster growing portfolio and smarter investments.
We handle the nitty-gritty, ensuring a quick and hassle-free purchase process for you.
Our team’s dedication goes beyond the purchase. We build lasting relationships with our investors, ensuring you’re never just a number.
Invest smarter not harder, as we aim to help you invest in success.