IS COMMERCIAL PROPERTY THE WAY FORWARD FOR INVESTMENT?

For many years, investors have focused primary on the residential property market overlooking its commercial sister, however, as residential investment becomes increasingly less attractive, now may be a good time to switch focus.

Owning and managing commercial property is a different animal to residential investment, offering increased stability through long terms leases. There is also greater control as an owner/landlord, as well as significant tax saving abates. Let’s explore the benefits…

1. Long term stability

Commercial property leases are typically long term arrangements and this is considered acceptable by both landlord and tenant.

2. Capital growth

Commercial property values may increase at a quicker rate than residential property, offering greater financial gains at the point at which the owner decided to sell.

3. Tax benefits

There are various tax benefits and deductions associated with commercial property such as property taxes, maintenance costs, insurance premiums, and mortgage interest payments all of which are tax-deductible for commercial property owners.

Depreciation allowances allow investors to deduct a portion of the property’s value each year, reducing taxable income and increasing cash flow.

4. Greater tenant responsibilities

Tenants can have a greater amount of responsibility due to the leases requiring tenants to undertake repairs and make good of any damage through dilapidation claims.

5. Diversification

Diversification into commercial property investment is a sound move for any portfolio, also spreading risk.

Are you interested in commercial property as your next investment? Speak to experienced and expert team who can you help you make the first step.

Contact enquires@smithandsons.net or call 0151 647 9272