You may get scared by the sound of buying an investment property as it’s such a big decision. This can be made easier by taking several factors into consideration, which we outline in this section.
At MOVEHUT, we have an abundance of investment property for sale, making it easy for you to find exactly what you’re looking for. We have offices for sale in England, industrial and warehouse property in Scotland and retail and leisure property in Wales.
So whichever property type you want to invest with, in whatever location, you stand a better chance of achieving your commercial property investment aims with MOVEHUT.
When buying a commercial property as an investment, it helps to have an understanding of how to get the best returns from your purchase. The first factor you should recognise is that its potential is almost exclusively dependent upon its rental value.
This means that if the property is vacant then the faster you can let it the better. A tip to bear in mind here is that if your investment property is large enough, you will reduce the impact of rental default if you multi-let. This way you will not be dependent on the fortunes of a single tenant.
One factor to be aware of is the yield. This is determined by calculating how much you will receive in rent per year in relation to the purchase price. The greater the yield the faster your investment property will deliver a profit. A higher yield also suggests greater risk!
A relevant factor is capital gains. This is the profit you could potentially make should you decide to sell the commercial property. This gain could can be increased by making it more attractive to future buyers by renegotiating existing leases and rents to produce a higher yield. Bearing these factors in mind will help you manage your investment property effectively.
If you’re considering buying a commercial property in the UK as an investment, you have probably already identified the rental market you’re aiming for. We have listed the most popular commercial property categories among investors above.
Other potential investments are healthcare and automotive properties. Land in the UK, with or without planning permission, is also considered to be a popular investment. You can learn more about all these categories here at MOVEHUT.
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