How much does it cost to invest in commercial property?
Investing in real estate is a great way to build wealth. In particular, it is known that investments in commercial real estate provide one of the highest revenue streams. If you’ve been investing in residential real estate for several years and have been wondering how to invest in commercial real estate, this guide will help you figure out everything you need to know to get started.
All you need to do is study the market
Hire a good real estate agent
Hire a good real estate lawyer
Commercial costs are similar to buy to let, but be aware that funding for commercial property below £300k is harder to secure than residential during an economic downturn. Deposits are usually at least 25% if not more. Costs of buying are higher than residential, around 3-5% and 10-15% for larger properties over £250,000. The main advantage of commercial versus residential is that tenancy contracts can be longer and you typically have more flexibility with regards to adapting the size of the accommodation and who you rent to.