Commercial property has been the best performing asset class over the last 10 years or so, outperforming equities and gilts by a good margin. This is according to Tom Entwistle, Editor of www.LandlordZone.co.uk which has been a focal point for the rental property industry since 1999.
Traditionally commercial investment has been the province of professionals and institutions, but with the right advice, you too can now benefit.
Commercial property includes shops, offices, industrial units and workshops, leisure or mixed use property with shops, offices and residential in the same place.
Example
The following example demonstrates how this type of investment works and what sort of returns are possible.
A shop premises in Bristol is purchased at £315,000 to let to a print shop business on a 15-year lease. The starting rent is £30,000 per annum with 3 yearly upward only rent reviews.
A deposit of £78,750 plus costs was invested and the commercial mortgage of £236,250 over 15 years with repayments of £25,940 per annum.
This investment provides a small annual income that should increase with the rent reviews and the property value should also increase in future years.
If investing in commercial property interests you, register here
Alternatively you can find out more about Purchasing a Business
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