As a nation, we are known for purchasing properties. Commercial property now accounts for an eighth of the value of all buildings across the UK, at a rough estimate of £690bn. (Source: Zoopla)
The largest commercial properties include offices, warehouses, restaurants, shops, supermarkets and hotels.
When the investor has purchased a commercial property, they may make renovations and improvements. For example, a retail buyer may invest in a new shop front, equipment, employees and stock. See: Stock Replenishment.
Finding the best property
The best time to purchase a property is when prices are low. This is why we recommend taking a look at commercial property trends in the local market, as well as nationwide. We also recommend contacting a commercial estate agent as they will have the knowledge and experience that you may lack. Click here.
The overall costs
Most typically, a deposit will be required and the remaining costs are needed once the deal has been completed. However, there are more costs that you will need to cover other than buying the property.
- Stamp duty
- Renovating the property
- Professional advice
When owning a commercial property, other things you will automatically have to pay for include insurance, repairs and commercial mortgage repayments.
Securing your finance
To ensure you have the right funds to go ahead with purchasing a commercial property, you may have to secure a loan in order to boost your position. We recommend one of the most popular forms of finance which is a commercial mortgage.
You can find out about other types of mortgages here.