Belize Real Estate Links 
| Belize Real Estate Links | |
| |
|
Real Estate Information |
|
|
|
Investing In Commercial Property
Why commercial property? Compared to residential property investments, commercial property offers some key advantages: Long-term secure cashflow -- Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited. Maintenance -- Commercial tenants are generally liable for the maintenance and upkeep of the property, contrasting with residential leasing, where the onus tends to be on the landlord. Income yield -- Commercial property tends to deliver a relatively high income yield throughout the rental period. In comparison residential property investors rely on the capital value of the house increasing to generate a good return. This is fine during periods of rising property prices, but less beneficial during property slumps. Commercial property investments have also performed well in terms of growth and stability, compared to equities and gilts over recent years. Commercial property for the personal investor Few personal investors will have sufficient funds to invest directly in a commercial property, however there are opportunities for indirect investment. For the small investor, only looking to invest a couple of thousand pounds, the choices are limited to a small number of unit trusts and life funds that invest in property or buying shares in property companies, such as British Land and Slough Estates (though these are often more linked to the equities market, rather than property market performance). Larger investors have a greater range of options available, with a number of products offering a chance to invest in geared property investments through a limited partnership structure. Often these products will require a minimum investment in the region of Ł25,000 to Ł50,000, which is invested in a single property. A few investors will be able to buy a complete property directly, however the cost of the property is likely to be 10 or 20 times the size of a residential buy-to-let, making direct investment prohibitive to most. Commercial property risks In line with all investments, commercial property investment comes with its own risks: Poor liquidity -- Compared to equities and bonds, property has poor liquidity, both in the time spent finding a buyer and making the transaction. This can be further emphasised in poor market conditions when the ability to find a buyer offering the right price will become very difficult. Poor diversification -- The more diverse an investment portfolio, the less susceptible it will be to tough market conditions. Investing in a single property can be a risky challenge. Market performance -- The property market is prone to cycles, as yields grow and decline depending on the level of supply and demand for commercial property. Current rental rates could decline in the future. Sector performance -- A decline in the sector that your property services could affect your investment. For example a period of poor sales performance and market withdrawal in the retail sector could lead to the demand for small store, supermarket, department store and warehouse property to decline sharply. What to look for when buying commercial property Location -- the location of the property is very important and will be a major factor in determining the value of property and rental income. Easy access to transport networks is an obvious plus factor for most tenants, but consideration should also be given to future developments in the area. For example, the development of a new supermarket, might depreciate the value of small shops. Type of building -- The requirements of tenants can change over time, with implications on the type of building they need. For example the move to open plan office space, could make older buildings with their rigid enclosed spaces redundant. Many companies also look for facilities like air conditioning and the ability to connect computer terminals through under floor wiring. Tenant quality -- Properties whose tenants are reliable, present a low credit risk and hold a long-term lease will hold a premium value. Market factors -- Try to identify which sectors and sub-sectors of the market will perform well in the future. The same can be said for geographic regions, which might receive future government or multi-national investment. Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Should You Sell Your Home Yourself? Are you thinking about selling your home? Would you like to sell it by yourself instead of hiring a real estate agent? If so it would be beneficial to review the pros and cons of selling your home by yourself before hanging out the sign.PROSSelling your home without an agent means More Money. If Your House Is a Mess, You Dont Have To Sell For Less Don't be tempted by "We Buy Houses" or "Sell Your Ugly House in 9 days for Cash" ads.These savvy real estate investors look for sellers under duress. How to Make a Home for Sale Flyer Using Marketing Psychology Want to sell your home right away, for the highest profit to you? Discover how to improve on the Realtor's number two sales tool--right after the sign--your sales flyer.Most real estate agents use a sales flyer template which showcases their listings using out-of-date marketing strategies. Dont Sell Your House--Ever! Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following:1. Moldy Homes are a Great Investment Have you seen this in your classifieds? -"Will pay $$$ for moldy homes. Call 555-555-5555"All you have to do is watch the news and you know about mold problems. An Overview of Easements Title insurance is generally associated with insuring a purchaser's or lender's interest in a particular piece of real estate. The right to use an easement is often considered less important than unencumbered title of the insured parcel. Young Couple Buys Ranch with Government Money Kirk and Tina Sczepanik had a dream. They wanted a ranch of their own. Property Investment Strategy: Securing Properties with Little or No Deposit Property Investing often requires creative strategies to make it successful. Professional property investors often use the option contract as a tool to develop some useful investment strategies. Investor Banned From Offering Property For Rent Do you realize that you might be prevented from renting your investment home? Prohibiting property owners from leasing their properties is a trend that is growing increasingly popular with some developers and many Homeowners' Associations (HOA).It's rare that you can buy a new home in a development that does have a HOA. Why Are Mortgage Notes Discounted Anyway? When real estate note brokers purchase partially paid notes, they pay the note holder a discounted price after factoring in the time value of money, the payer history, and property condition.If there is still a significant period of time left for the payer to make payments, the future payments are not worth the same amount in current dollars. How Much is that House in the Window? With the recent release from the UK's biggest mortgage lender, the Halifax, of its latest house price report for May 2005, showing that prices fell by 0.6% last month, and prices falling just 0. Oh No! Something has Happened in Florida The Florida housing market has attracted many foreigners to invest their hard earned money in the sunshine state. The British have for a long time favoured Florida for buying a second home. Property Investing Secrets 5 Property Investing Secrets:How To Work With Agents And Get What You WantWhen you're property investing, it is important to know how to connect with real estate agents. Here are some techniques you can use when you are out there pressing the flesh. Home Equity or Debt Trap? Are you using the equity from your home to purchase everyday things? This is a dangerous trend growing more popular every month as millions of Americans tap into the value of their home to fund a lifestyle.How many times have you heard the saying "Your home is the best investment you'll ever make"? How many times have you also heard that your home will be the most valuable asset you will ever own?Both of these are as true, if not truer, today than at any time in the past. Panama is Hot - A World Class Retirement Haven Thats Ripe For Profitable Real Estate Investment If you've followed any of the major survey agencies around the world that rate places for retirement, Panama has been on top of the list in many, and for a few years running. So, if you're looking for a place outside U. Buying Property In Spain It's high time someone advocated the use of common sense and suggested that those people looking for that dream home in Spain actually apply a cautious approach to buying!After all, real estate is such a significant purchase for most people that you'd think people would be only too ready to think twice and long and hard before committing to purchase - especially when buying abroad where the rules and customs differ greatly to what we may be used to.But it seems that so many people are seduced by the sunshine in Spain and by aggressive and slick agents and developers that they are willing to purchase unseen, to buy off-plan or even remotely via the internet and to basically purchase without the slightest clue about just what it is they're getting for their money. Property in Northern Spain If you're looking for the 'real' Spain where the culture, customs and the traditional Spanish lifestyle have been preserved - a Spain long ago lost and forgotten along the Costa del Sol - consider Northern Spain.Northern Spain has always been a popular holiday destination for southern Spanish tourists, but until relatively recently it was largely unexplored and undiscovered by foreign tourists and those expatriates seeking a new home overseas. Tax Assessment/Appraisal: How Do I Know What My Home is Worth? If you are in the home buying or selling market, it's important to understand the difference between tax assessment and appraisal value. Concentrate on the appraisal value because this determines your asking price. Mancos Real Estate Real estate: availability and costIn 2000, the median home value for a single-family residence in Mancos was estimated at $94,200 as compared to the U.S. Home Warranties: Are They Too Good To Be True? What is a 'Home Warranty?'A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them.
|
| home | site map | Colorado Log Homes | Homes for Sale in Denver Metro |
| © 2006 |
