Commercial Property - Good time to invest into commercial?

Any thoughts?

Julian,

Yields have been squeezed in this meraket too, but may be not as much. I think that right now it offers better value. Although, more capital is needed to get in.

Not really a market private investors.

FS

Financing is pretty available on commercial and often a lot safer than the residential market.

I know that I would prefer to buy an office let to the government for ten years at a 5% yield to a flat in central london at 4.5%.

Anyone that disagrees is either a shark or needs their head examined.

FS. What is not for private investors? How much do you need?

For reasonable diversification across the main sectors (retail, industrial and office), you really need between £2m - 4m. unless highly geared when £0,5m might do.

FS

commercial prop yields are apparently down to ca. 6% now. not sure now is the time to be moving in.

phil

6% and below is for the prime assets or those expectations with high rental growth expectations (retail warehousing etc). You can still find decent yields within the office and industrial sectors (6-8%) with good covenants. This has got to be good value vs. the resi market?

I am looking into local shops, offices and industrial units. I think I cam afford these. By the way, the financing you can get on these is very competitive.

Phil

if i were to want to buy say a shop property and let out, what type of ltv do i get, 85%, 100% ????

if u get high ltv then why isn't it recommended for the residential investor???

Mohammed, We have a lender which probably gives the highest LTV on a self cert basis, upto 79% LTV. Very rarely, will you get higher than that, in most cases you will only get maximum 70%, which is why it isn't recommended unless you have the money. Mark makes a very good point. A 5% yield to a blue chip client such as government, FTSE 100 company is excellent as there are no headaches. Rent is reviewed, it is a repairable lease, no need to bother repairing the boiler or changing carpets, tenant does it all. Let me know if anybody needs help with arranging finance on coo=mmercial property. Regards,

Zubair

Zubir, I'm looking at finance for a few projects on the commercial side to add to my residential investments. 79%LTV sounds great!!

Could you email me the details please?

info@properytinvestment.uk.com http://www.propertyinvestment.uk.com

Hi Zubair, can I have your details please. need to look into Commercial LTV 75%+ ketan8@hotmail.com

Hi Zubair, please forward me your contact details for purpose of commercail.

javidhakim@yahoo.com

Regards Javid