A lot of people made a lot of money through residential property market. Now let’s see a new potential for yourself – commercial property! Some investors avoid commercial property as it involves a lot more efforts and management compared to a residential property.
However dealing with commercial property is not easy as it sounds. Some people lose a lot of money on the commercial property market and that is you need to get advices on commercial property investment before you start on doing one. When you invest in commercial property you will usually be required to take out building insurance by your mortgage provider however in the commercial market, the insurance requirements are different compared to residential property.
Commercial property investment in UK is different to other property investments and you should aware of the risks for investment in this area. The total value of commercial property for investment is much lower than residential properties with a total equities value of £1,148 billion (figures at the end of 2002). Investors involved in commercial property investment in UK basically come from different fields and backgrounds and acquire commercial property for various reasons.
Commercial property can be divided three major areas which are:
- retail property such as shops, supermarkets and shopping centres
- offices and business parks and industrial property industrial estates and warehouses
- parks, leisure centres and restaurants and pubs are much smaller sectors of the commercial market
Tenants of commercial property often sign much longer leases than tenants of residential property. In the commercial market the tenant has responsibility for maintenance and repairs.
Currently there is a growing interest in commercial investment property from UK investors with reasonably benefits and profits. The commercial property investment in UK market is driven by property investment companies who look for commercial properties that match the requirements of the investor.
You can start looking for this opportunity while enhancing your understanding by reading tips and advices on commercial properties investment. Some of the properties and investments might be ideal for testing your chance in commercial property investment in UK.