04

May

Written by Helen Robinson

In recent years, more people have turned to commercial property as a potentially profitable investment opportunity.

With increases in the cost of buy to let purchases, commercial property is being considered by many as a viable alternative investment.

Reasons to invest in commercial property

In this article, our dedicated commercial property solicitors take a look at some of the reasons to invest in commercial property.

Commercial property gives you many options

One of the first benefits is the number of options available to anyone seeking to invest in commercial property. There are a range of commercial properties available to invest in from retail spaces and high street shops to warehouses and offices.

You can use a pension fund to purchase commercial property

A Self Invested Personal Pension (SIPP) can be used to purchase a commercial property. This can be a highly tax-efficient investment option for anyone looking to buy a commercial property.

When rent is paid on the property, it will go straight into the pension pot which can lead to significant tax savings.

Investment in commercial property through pension funds is a specialist area, so it is important you seek advice from a solicitor with experience in handling pension fund transfers.

You can make a long term, high income investment

By investing in commercial property you will benefit from the stability of longer leases which can offer a much larger rental income than residential properties.

Residential leases will often only last from 6-18 months whilst commercial leases can last up to 25 years. Many commercial leases will also include ‘upward-only’ rent reviews which means that rents cannot drop on review.

It’s often less hassle than residential investment

Investing in commercial property can be a lot less hands on than investing in residential property. In many lease agreements, tenants will be responsible for covering costs of the maintenance and repair of a commercial property. It is obviously in their interest in maintain the property and refurbish it to suit the needs of their business.

Are you considering investing in commercial property?

If you are considering investing in commercial property, the dedicated team at Commercial Matters can provide the advice you need on all aspects of the purchase process.

To talk to one of commercial experts today, call us on 01282 695 400.

Or, simply complete our quick online contact form and we will be in touch with you within 24 hours.

Comments