The commercial property market in the UK is estimated to be worth £6,800 billion. Think about that number for a second. Wouldn’t it be nice to have even a small slice of that market.
Despite the threat of Brexit, the fundamentals of the commercial property market are sound and with a number of commercial properties for sale, opportunities abound for savvy investors with patience and a willingness to ride short term slumps.
But the commercial property market is a different beast to the residential property market and for inexperienced investors presents many challenges. Here’s a series of tips to think about when looking at commercial properties for sale.
* Young but keen: It’s never too early to start and the earlier you get into the property market, even a slice of it, the easier it becomes down the track. You could consider teaming up with a sibling or cousin to buy that rundown property down the street with potential.
* Can you borrow? If you need funding and the lenders won’t lend to you, it’s a problem. Do you have a regular income and stable employment? Do you have an established saving pattern? Is your credit good? All these can be rectified with some time and due diligence, but you do need to tick these boxes to begin with. There are a number of calculators which can give you a rough guide of what you can borrow. One is https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing
* What are you trying to achieve? Are you after income? Rental yield is important. Are you after financial independence? Capital growth is key. Or like a lot of people, you might like a bit of both.
* Know the market: If you are interested in buying in your local area you may well have a sixth sense about what’s happening in the property market – and that’s no bad thing. If you are casting your net further afield you need to do your homework. The more developed your knowledge, the better your decision making will be.
* Know your costs: Buying a commercial property is just the start of it. There’s a whole raft of costs associated with buying property – agency fees, solicitor’s fees, stamp duty, insurance, inspections. You need to know what these costs will be and factor them into your financial calculations. See more properties at https://www.proplist.com/
* Consider help: Inexperienced or just not great at negotiating? Buyer’s agents are relatively new on the UK property scene and can do the heavy lifting on your behalf. A good agent can be worth their weight in gold, saving you time and money. An established buying agency in London is https://www.thebuyingagents.com/ and is a good place to start if this interest you.
* Grab opportunities: When you’ve surveyed all the commercial properties for sale and the perfect one comes up and everything is good to go. Well, opportunities come, and opportunities go. It’s your decision in the end but why don’t you reach out, become a commercial property owner, and grab a slice of that £6,800 billion pie.