Enabling individuals to access the lucrative commercial property sector
Commercial Property: retail, office, warehouse & industrial property investments
Commercial property is the backbone of most major property portfolios; especially for professional and institutional investors. Despite the obvious attractiveness, direct ownership of commercial property is difficult for individual investors due to the fact that the values are usually so high.
However, when looking at exciting emerging markets and smaller property sizes, investment can be affordable.
Commercial property typically offers long term, stable rents with excellent covenants. Commercial customers often sign up for multi-year fully repairing leases which mean more of the rent falls to the bottom line of the landlord.
Also, this asset class taps in directly to the economic health of a country and regular upward only rent reviews mean that landlords can benefit from increasing rents without the downside risk of changing tenant.
In places like the UK, commercial property yields have dropped as capital prices have soared. Institutional investors are happy to sit on low yields due to the relative security and long term capital uplift possibilities. However, in emerging markets commercial property can still offer excellent yields and even more opportunity for capital growth.
Is this asset class right for me?
- The opportunity to own commercial property
- Long-term stable tenants
- Low maintenance obligations
- Strong yields and possible capital growth
- Complementary asset class for a diverse portfolio
This week for #TaxTuesday we tackle the full range of taxes affecting property investors (see our first post), assessing the extent of the benefits and efficiencies that buying through a company affords. Tax benefits: stamp...read more