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Are you looking for a property investment with a commercial or residential tenant in place? Why not search through our database to find an ideal property investment.

 

The term ‘property Investment’ is vague as literally almost all property deals could be seen as an investment. The properties defined as investment on our website are those with a tenant in place be it residential or commercial. The benefits of purchasing a property with a tenant in place has the advantage of simply transferring the existing lease to the new purchaser thus receiving rental income immediately.

 

There are different types of investment strategies a purchaser may make. For example, they may have a mix of residential and commercial property.

 

Commercial property investment is seen as a long term hold and investors will tend to rely on rental income rather than increase in property prices. Although prices may increase over time but an investor will look at the yield the property will bring in.

 

Investing in commercial property can be a sound investment. The rentals yields are attractive and often a lease with a commercial tenant would have been signed for a long term, typically up to 10-15 years with the added benefit of rent increases. The average business lease length in the UK is approximately eight years which is considerably more than a residential lease.

 

Residential property sold with tenants in place is not as common as the commercial route. However, these do come up sometimes but a good place to source for it would be property auctions. If you are taking over a lease be sure to check the fine print of the lease conditions.

 

Another form of property investments are freehold Ground Rents. Ground rent is a regular payment made by the owner of a leasehold property to the freeholder, as stated under a lease. A ground rent is created when a freehold piece of land or building is sold on a long lease or leases. An example would be a block of apartments. The apartments are sold on long leases and the purchaser will own the apartment but will have to pay Ground Rent to the freeholder of the block of flats. The ground rent provides an income for the landowner.  

 

Investments of this type are primarily for the long term benefitting from rental income. The price paid is usually a multiple of the total rent however; this may vary depending on the length of the freehold remaining.