Commercial Property Investment Explained
Property is one of the biggest investments you can make in your lifetime, and while it can be difficult to get on the property ladder at first, these types of investments can yield great returns. A large number of people choose to invest in residential property, but commercial property investment is a great way to secure and diversify your investment portfolio.
Commercial property refers to any real estate that’s used for business activities, such as offices, shops or industrial buildings. There are many benefits to be gained from investing in commercial property but it can feel like a daunting process if you’re new to the market. If you’ve been thinking about investing in this area but want to know where to start, read on for our brief guide.
Why invest in commercial property?
Commercial property is generally considered a more secure investment than residential properties, and they tend to have better earning potential too. Commercial properties usually have a longer lease structure, (an average of eight years compared to six months to a year for residential properties), which can offer greater security as well as a longer period where income is guaranteed. In some cases you may also be able to see greater returns through shares.
Another benefit is the level of variation in commercial property investment ventures, meaning there are several options for investors depending on their experience.
There are several different ways of investing in commercial property and these are split into either direct or indirect investments. Direct investment means buying all (or part shares) in a property, meaning that you physically own all, or part, of the building.
Indirect investment involves investing in shares of companies which then invest in property; this is seen as a riskier option as it depends on the movement on the stock market and shares can quickly rise or fall. This method of investing is much more accessible however, and you can begin with as little as £500 to invest as a lump sum.
If you’re looking to invest in commercial property, get in touch with the experts at Andrew Lee Property Lawyers. Our team of experienced conveyancing professionals and expert commercial property lawyers will help you ensure all of your legal contracts and documentation are in order; protecting you and your commercial property from risks and unforeseen circumstances. For more information or to arrange an appointment, give us a call today or visit our website.
