We’re seeing an influx of investors turn to commercial property in the face of buy-to-let margins being squeezed from all directions.
Commercial property is an attractive option given its exemption from the tax changes that hit buy to let and Stamp Duty is capped at 5% over £200,000.
However, there is much more to consider when purchasing commercial property so it is crucial you do your homework and consult a property finance expert like Propp before taking the leap.
Let’s dive into the need-to-knows if you’re thinking of becoming a commercial investor.
Finding a property
Unlike picking up a residential doer-upper, flipping it and letting it out, there is much more you need to be clued up on before proceeding with a commercial property.
You need to understand its asset class, as this will impact:
- How and whether you can finance the purchase
- Whether you need planning permission to make changes to the building or its use.
When deciding whether a commercial property is a viable investment you should consider its location, size, whether it has parking, or if it close to transport links. Familiarise yourself with the local area and think like a tenant if you’re planning to let the property out. If you wanted to rent the property, would it meet your needs.