The property is comprised of two elements: land and building and is a tangible asset. While buildings can become disused and demolished, the land remains an asset that generally retains great value as it is in limited supply in the UK. Furthermore, the amount of development is usually limited by the land-use planning system. Property may also offer the opportunity to increase its value, and hence investment returns, through ‘active’ management.
Considering the last decade, a rollercoaster ride in commercial property investment for sale in the UK may be an understatement as the last ten years have witnessed the soaring highs to the crashing lows of the recession and a surging market once again since the last few years. However, throughout all the instability, commercial property has always been a fancy option for investment. In comparison with other forms of investment, the unit cost of direct commercial investment for sale is very high. The commercial property represents around 12.5% (£683bn), with around 60% of this being ‘investable’. While the value of the UK property overall is far greater than the London Stock Exchange and gilt market combined, commercial property on its own constitutes a smaller market than the other two asset classes. Many factors impact the costs of the commercial estate like; the age of the property, the condition at the time of purchase, and how well it has been maintained over the time that ultimately influences the returns on the investment. Alongside, the location of the property and its redevelopment potential also determine the returns on the investment.
Many of the investors already have some exposure to the property market via the purchase of a residential building. Investing in commercial investment property for sale is also an attractive proposition. It offers a regular income generated through property rentals and the potential for growth in the form of capital appreciation. However, selecting the right property investment is gruelling but simultaneously crucial. A large number of agents suggest for commercial investments for sale but Crown Homz additionally assists in providing access to new market opportunities to our investors through our extensive market contacts and our immense experience in the commercial property investment sector.
But then the question arises; what commercial property should you invest in? Usually, commercial properties are more expensive to purchase but will engender more ease in the long run. The UK property investment market has been dominated traditionally by three main sectors: Office (41%); Retail (39%); and Industrial (11%). Your stable tenant on a long-term lease may limit the rent to fluctuate frenetically but you save on the maintenance cost of the property as such expenditure for commercial units is generally covered by the renter as part of the lease. While it is common for leases in the UK to make the tenant take responsibility for all costs of repair, insurance and maintenance of the building, the landlord will still collect the rent and ensure the property is managed adequately. Using the extensive market know-how, CrownHomz furnishes inflated returns on investments with experience in investment acquisitions, debt financing, collaborative developments and investment analysis before making a purchase. CrownHomz is best positioned to unbolt the door in the commercial property investment
Precisely, if you have some capital to invest and aren’t looking to make immediate but huge returns, then a commercial investment is your best chance to attain maximum gain.
With tax changes making a buy-to-let property less appealing as a source of income, more investors are turning to commercial property, with a growing number investing in student accommodation.
Britain is a nation of shopkeepers. At the last count, there were 539,000 outlets in the UK retail sector – around 10% of all UK businesses – employing a combined total of 4.4 million people, according to the Office for National Statistics.
It’s a theme highlighted by global estate agent companies. Which reveals an increasing number of private investors had become involved in turning to more lucrative commercial Investments.