Many clients are now considering a Commercial property as part of a diversified investment portfolio. Commercial investment property is seen as a safe haven for investors providing a good level of return on your initial investment without the fluctuations normally associated with the stock market. A number of the large investment houses are now offering unit trust schemes that invest 100% into Commercial properties. With the new style leases normally reviewed on a 3 or 5 year basis and with rent guaranteed only to stay static or increase you have a very safe investment which although should be considered a long term one (10 years) the flood of money into this particular area is producing some excellent results. The investor in Commercial properties can expect to see a good level of return from the rental income together with the capital appreciation in the property as property values increase. There are a number of hot spots in the country which potential investors should be aware of and should make sure that there homework and due diligence is as in depth and professional as possible.
With a Commercial investment into property lenders may look for the investor to have a slightly larger deposit then someone who would be buying to occupy the premises themselves. A lender would also require that the rental income from the property would service the mortgage interest by a given margin, this would vary from lender to lender. The principle here is that as it is an investment it must be on a self funding basis. The attraction towards commercial investment property mortgages rather then the residential buy to let (BTL) is the stability in the Commercial sector and an almost guarantee of future income which will increase when the rent reviews are agreed. It must be stressed as with any investment that diversity in the portfolio is essential to achieve maximum investment returns with an acceptable balance of risk.
Whether you are an experienced property investor or are looking to get a first rung on the investment property ladder, A Commercial Mortgage 4 You have a different approach to help you build or start your investment property portfolio.
We at A Commercial Mortgage 4 You do our best to take away some of the stresses of buying a Commercial property with our intimate knowledge of the market and working closely with the lender and Solicitors to make the path towards completion as smooth as possible.
Investment property loans come in all different types with various terms, depending on the property being financed. We invite you to take a minute and browse our website to see what other investment property we can assist you with, from shops, offices, holiday homes, to nursing homes and golf courses. Loans on investment property are usually tailored to each property type. We always try to look at your long term plans when we arrange your finance in order that it fits in with your wishes.
Some of the many investment properties we can help you with are,
Shops, Hotels, Offices, Restaurants, Nursing Homes, Business Premises, Golf Courses, Farm and Agricultural land, Converted towers and much much more.
.:..:: Investment FAQS
Should I be focused more on rental yield or capital growth?
Again this will depend on your income and age, i.e. when you are younger with a high and/or rising income you can afford to be more focused on capital growth. As you grow older, yield (cashflow) becomes more important. At any stage we believe in developing a balanced portfolio of both high capital growth properties and higher yield properties.
What type of property should I invest in?
A Commercial Mortgage 4 You deals in a broad range of property to deliver a balanced long term wealth creation portfolio. The range can be very broad from apartments to home and incomes and everything in between. Your attitude to risk may sway you towards or away from certain property types.
Which area should I invest in?
Again the response is similar to what type of property. Different areas provide different buying opportunities, both in type of property and growth prospects. Make sure that you do your due diligence and that the property fits in with your MODEL.
What if I can't get a tenant?
This is we hope a rare occurrence, especially in today's market where quality property is in high demand. A well located and maintained property should always have a ready tenant market, and this is where doing your home work is so important Especially when utilising the services of an experienced property manager who has incentives to maintain a high occupancy rate.
Should I put any spare cash into the investment property?
Part of a good investment plan is being tax effective. Spare cash should be used firstly to pay off any loans on non income producing assets, or short term finance which attracts a premium rate of interest, namely the family, credit cards, etc. Once these are paid off then consider either increasing your investment asset base or reducing debt, depending on your long term plan.
How much can I borrow?
This is based on your circumstances, fill out our enquiry form and we will assess your situation and eligibility for a commercial mortgage loan or other finance.
How many properties can I buy?
This will depend on a combination of your income, assets (typically your property) and time. When taking these factors into account we can assist you in establishing a long term property investment plan to achieve your retirement goals and the implementation of that plan is sourcing the right properties and the right time.
