Singing Pig

Hi,

Most commercial properties that come to auction offer around the 5% return, I sold a commercial property recently which offered a 7% return.

Mine was a small shop & flat above, I received a good rent for the shop and top rent for the flat.

Most of the 5% returns offer a long lease from blue chip companies, at the end of the day, it depends how much deposit you can put down.

I am trying to invest more in commercial as I am tired of the hassle from tenants etc. The advantage over commercial is long leases and they are responsible for repairs etc

But all cases are different.

Alan

Yeild is a personal thing. Determined by what you pay to purchase a known income stream over a period of time

ie. if an investment is paying say £10pa in perpetuity income and you are prepared to pay £100 to purchase - then in very simplified terms the yield would be 10% - if you pay £50 then the Yield alters to 5%......

Actual Purchase price determines the Yield on a set income stream.
 

PropertyDealerUK:

Hi,

Most commercial properties that come to auction offer around the 5% return, I sold a commercial property recently which offered a 7% return.

Mine was a small shop & flat above, I received a good rent for the shop and top rent for the flat.

Most of the 5% returns offer a long lease from blue chip companies, at the end of the day, it depends how much deposit you can put down.

I am trying to invest more in commercial as I am tired of the hassle from tenants etc. The advantage over commercial is long leases and they are responsible for repairs etc

But all cases are different.

Alan

Do you buy most of your commercial properties through auction? Are you expecting the returns to go up in the next few years?

PropertyDealerUK:

Hi,

Most commercial properties that come to auction offer around the 5% return, I sold a commercial property recently which offered a 7% return.

Mine was a small shop & flat above, I received a good rent for the shop and top rent for the flat.

Most of the 5% returns offer a long lease from blue chip companies, at the end of the day, it depends how much deposit you can put down.

I am trying to invest more in commercial as I am tired of the hassle from tenants etc. The advantage over commercial is long leases and they are responsible for repairs etc

But all cases are different.

Alan

Do you buy most of your commercial properties through auction? Are you expecting the returns to go up in the next few years?

definatly not-depends where you look if in london maybe-but thats a big exeption to the rule,id look around,other towns,districts-just open any auction catalogue and sold prices are at least round the 6,7,8% range and plus

what area are you looking in.?