What Kind Of Investment Property Delivers The Best Returns?

Categories: Property TipsPublished On: June 29th, 2022Comments Off on What Kind Of Investment Property Delivers The Best Returns?

Investment properties can often be seen as the golden goose for many. A property that you own, which delivers stable rental income each month over its lifetime sounds like a dream. Finding this property isn’t easy, but if you can, it can be a great investment for the future – and it’s not an opportunity to pass up.

Finding the right building depends on what you want to get out of it, in both the short and long term. Commercial property investment starts off as a very daunting prospect, but can be simple with the right location – and the right support.

The team at Williams Sillitoe are experts when it comes to property investment in Manchester – we know where the best places to look are, and what kind of factors you should keep in mind when you’re ready to make a decision. Every situation is different, so there’s no one size fits all solution. What works for someone else may not work for you.

One thing to know, though, is what type of commercial property makes good investments.

Is Property A Good Investment?

So, is property a good investment? The answer is, it depends. For some people or businesses, it can be a boon that brings in plenty of stable and reliable income, however the sheer cost of properties can shut the door on this being an option for anyone. It might seem counterproductive to spend a lot of money to get smaller amounts back, but the option to sell in the future is always there.

In terms of all the investment opportunities that are available, property investment is always seen as a solid choice. There will always be a need for properties, whether residential or commercial, and as the population grows – and more businesses are brought to life – this demand is only going to increase.

How To Invest In Property

There are a few options for anyone looking for how to invest in property – especially commercial property investment.

The most obvious option is to buy the property outright, or through mortgage lenders if applicable (although this is not always an option for commercial properties). Away from this, you’ll be looking at investment groups and organisations, where you act as part of a group and receive a percentage based on what is put in. This also lowers the amount of direct responsibility you have for the property.

Find out more about commercial property investment.

What Is A Good Investment Property?

Finding a good investment property depends on a lot of factors. The building’s purpose, location and price all plays a part in determining how valuable it will be – and that’s not even taking into account the price of the property itself.

Some properties will be a higher risk than others, and demand will have an effect, too, with some areas in need of certain services and business (and the properties that house them). That means there’s a lot to consider when looking at property investment in Manchester, which has no shortage of opportunities.

While there are a full range of commercial properties that you can invest in, some are more common – and popular – than others, which our team have listed here.

Office Buildings

Office buildings are one of the most common and popular types of commercial property for investors. They are available in all shapes and sizes, from buildings that are occupied by a single business to towers that can house multiple businesses of various sizes. The larger the office building, the higher the cost to buy, but the more rental income you can get back from it.

There’s always a demand for office space as more businesses appear each year. Location plays a part, with highly sought after areas often costing more for businesses to lease. If you can find an area being developed as a business hub, it could turn out to be very profitable over time.

Apartment Blocks And Houses

Owning houses and apartments is a common form of property investment, as there is always a demand for housing. Areas undergoing development and improvements can very quickly become sought after locations, which push the rental price up drastically. If the property is in good condition, it adds a premium that can make it very profitable.

Compared to commercial properties, residential buildings are cheaper, however if a mortgage is needed, a larger deposit (typically 25%) is needed compared to what is needed when buying a home to live in yourself.

Owning apartments and houses can be seen as low-risk property investment compared to others, as there’s less of an ebb and flow compared to the commercial or business world.

Warehouses And Storage Facilities

Warehouses and storage facilities are built on large plots of land, and the buildings themselves are very simple compared to houses, offices and other properties. They can be split into sections of various sizes that can be rented out for long or short periods of time. Without the need to complete complicated internal work that other businesses need, it can be operational very quickly.

Both people and businesses all need storage space, whether it’s for belongings, stock, equipment, or something else. There will always be a demand for this, and having a facility with good access routes and close to road networks will make it a very popular choice.

Retail And Hospitality Units

The bread and butter of any town or city are the commercial properties used for leisure, entertainment, and shopping. These properties come in all shapes and sizes, and are often the subject of long leases to make sure the business gets some stability while letting customers easily find them.

While ecommerce has changed the retail landscape, there is still a huge demand for physical stores, both on the high street and in shopping centres. Restaurants, bars and event spaces are essential for any community and there’s always a niche to be explored and developed to appeal to everyone in the area.

Find Out More About Commercial Property Investment

Commercial property investment isn’t for everyone, but it does come with some pretty big benefits for those willing to get involved. Owning a commercial property outright is an expensive proposition, but there are other methods that can still help you get started while seeing some of the advantages.

This isn’t a decision to make lightly, and knowing your responsibilities is crucial to make sure property investment in Manchester is the right decision for you. Our experts at Williams Sillitoe can help with this, answering any questions you may have while making sure you understand everything about the process.

As with everything, while there are great rewards, commercial property investment is not without risk. Get in touch with our team to find out more.