You may think ‘I am a residential property investor, why would I buy commercial property?’
There are a number of benefits to buying commercial vs residential property. Here is a summary:
- Any investment specialist will say to ensure your investment portfolio is diverse and not to ‘put all your eggs in one basket’. Therefore, having a mix of residential and commercial property in a portfolio means you are spreading your bets.
- Commercial property usually yields better than residential property. Residential buy to lets usually yield between 5-6%. Commercial property typically yields between 8-10%
- Commercial tenants typically stay significantly longer than residential tenants. Residential tenants typically stay around 18 months. Commercial tenants typically stay 5 – 10 years!
- Commercial tenants pay for upkeep. Residential landlords typically pay for all maintenance at their property while commercial tenants typically pay 100% of any maintenance.
What should I do next?
Should you like to discuss possibly investing in commercial property, please fill out your details below and a member of the commercial property team will contact you to arrange an informal discussion.