Commercial Property is More Stable than Residential Property
The current economic climate in the UK has meant that residential house prices are in freefall, the same fate, however, has not befallen the commercial property market. Although industrial real estate will suffer when residential real estate suffers, it does not do so to such an extreme. This is largely because people do not make a commercial property investment emotionally; therefore, prices are very rarely artificially inflated.
Commercial Tenants are More Responsible than Most Residential Tenants
If you have ever known anyone that has invested in the buy to let market you will probably have heard a few stories about “nightmare tenants”. This is not something you have to concern yourself with regarding your commercial property lease, you will be renting to companies and businessmen who for the most part will be very respectful of your property and certainly will not be throwing any wild parties there.
On Average Commercial Property Yields a Greater Return on Investment
Although you pay out more on average when you acquire a commercial property for investment, you also receive a much healthier return on your investment than your residential counterparts. This is largely due to the longer lease terms you can impose on your tenants which means you greatly reduce the vacancy periods that a residential landlord may suffer every 6-12 months.
The Commercial Property Market is Less Competitive than the Residential Market
The commercial realestate is certainly less competitive than the residential market, simply because there is less demand, on the surface this may seem as though it were a disadvantage, but what you must remember is that this makes it a seller/lettor’s market. You have the advantage, and the more you invest the more you will be able to reap the benefits of an investment vehicle that most people overlook simply because they are not familiar with it. By the time a UK citizen is 40 years old, chances are they have made at least one residential real estate purchase, but a much smaller number of those will have made any sort of commercial property investment. And even then, it was probably a small business premises for themselves such as a corner shop, butchers, pub, or florist.
Commercial Property Holds it’s True Value Better than Residential Property
According to recent statistic in the UK, commercial property holds its true value more readily than residential property. This is because more often than not, even when there is a downturn and people lose their homes, they usually still have their jobs, but even when they have been made redundant, the company is still functioning, usually, and still paying its lease.
Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who also deals with Commercial Properties with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.