A global brand with local representation specializing in commercial spaces. According to data from Money Observer, property investment trusts have on average gained 28% over the past year to 1 September, while funds have returned an average of 5%. Industrial units and office space make a profit from both the rental income and capital growth in the price of the property, meaning investors should benefit from growth in both areas over the next few years.
Talk to realtors, double check what rents the market will bare and get a firm understanding of the cash flows of any property you are looking at. Numbers can sometimes be fluffed to make the property’s outlook more optimistic than it really is. Make sure you are dealing with real numbers and not estimates.
The current problems with commercial property investments started when hedge funds and private equity lenders began offering much higher loan to value ratios, meaning they would lend against your investment property with as much as 80 percent of the value of the real estate.
Owning your own space in business is important since you do not have to worry about renewing the terms of lease contract every end of the period and you can also prevent that possibility of the owner selling the space after the end of your contract and the new owner not letting you rent the space (and then you have to find a new space to rent, losing some of your loyal customers who may not be within close proximity with your new spot).
Financiers know about the mechanisms of incentives and how they are provided and documented, and valuers of property similarly so. Importantly the level and type of lease incentive in the market is known by all parties and is not exceeded unnecessarily.