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OK Guys and Gals,

One landlord, three commercial propertys all up for sale, gone on sale today. Getting out at the top or panicking as the top has been and gone???????????

:huh:

What do you clever people think of the rental yields.

If you had £350,000.00 sitting in a bank account and wanted to invest. So to provide an income, how do these compare, to the Jonny come lately lie to let 2 up 2 downs etc.

http://www.daltonsbusiness.com/business.as...D=1014&Sector=0

http://www.daltonsbusiness.com/business.as...D=1014&Sector=0

http://www.daltonsbusiness.com/business.as...D=1014&Sector=0

No scarcastic comments please regarding "if i had £350,000.00 in an account, i would.................!!!!!!!!!!!!"

Serious comments please. :D

P.S. Its just a question, i have no intention or the funds to make such an aquisition.

Edited by Panda

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The video store - says it's a low-risk tenant but isn't this industry under pressure? Competitors include Sky etc, Amazon's DVD rental service.

The pubs - these really depend on the exact location. Are they old men's pubs in terminal decline?

The one thing I'd really stay away from is retail property. UK retail is overspaced and there's already an increase in businesses going into administration (anecdotal from the trade press, no figures). Even some of the big quoted companies are reducing retail space.

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At first glance the rental yield is approximately 10%, which looks like a fair return to me and a reasonable investment.

Compare this to residential property (in the south east esp) where you would be lucky to get half this rate and you can see why the people on this board think that house prices have to come down.

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OK Guys and Gals,

One landlord, three commercial propertys all up for sale, gone on sale today. Getting out at the top or panicking as the top has been and gone???????????

:huh:

What do you clever people think of the rental yields.

'twas the fall in highly leveraged commercial property that precipitated the last crash.

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10% Yield

Makes the current lie to let 5% look pretty unattractive :lol:

I think 10% yield is the norm for commercial property, but in a downturn you may get nothing for a long time.

I've taken an interest in commercial property before, but found that at the level I could afford it was not a good bet. These businesses look a bit dodgy to me. I read somewhere recently that lots of UK pubs were closing down. I'd say if you can't afford to be landlord to a household name its risky.

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I think 10% yield is the norm for commercial property,

Then why is 5% the current and acceptable norm to the average Joe BTL.

Why do they accept such a poor return

And, i know, house prices are over priced to incomes and rental yield.

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Then why is 5% the current and acceptable norm to the average Joe BTL.

Why do they accept such a poor return

And, i know, house prices are over priced to incomes and rental yield.

Commercial is more risky. Long periods of no return are common.

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Then why is 5% the current and acceptable norm to the average Joe BTL.

Why do they accept such a poor return

And, i know, house prices are over priced to incomes and rental yield.

Commercial property has many attractions.

I am trying to buy a commercial property to site my business in. I currently rent. As an owner I will be able to partition some space off and let it out, which means my net outgoings will be the same as I spend currently on rent BUT, in 10 years I will own the property outright.

There is another attraction to commercial property investment that Dr Bubb misses; Lets say you buy a retail premises and let it for a modest rent, which in itsself is a fair investment. Now consider the fact that owning such a property gives you a world of opportunity for the future in that you may one day decide to run your own business from it.

The danger in not buying commercial property now is that you may never again get the chance. Despite current poor retail figures I firmly believe the demand for commercial property will only increase due to increased population as a result of immigration.

My nearest town is Bishops Stortford in Herts. It is virtually impossible to get hold of retail units in town and the waiting list is years long.

For people like me that will never work for someone else, the aquisition of commercial property is vital and expands ones future prospects.

Edited by dogbox

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Dogbox,

Take your point, there are certainly many advtanges for some businesses to own the premises which they use - however there is also a world of costs that go along with running a business from those premises, not least of which is business rates. There are also good and bad times to be in business, 70 unlet retail presmises locally suggest that now might be one of the latter times.

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Dogbox,

Tell me.

Say you owned one of these properties

You were recieving 30k per annum in rent.

Excluding loan repayments, what other costs would you incurr. (Income Tax, Insurance, Maintenance cost etc)

For example, you do not work, the rent is your only income.

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OK Guys and Gals,

One landlord, three commercial propertys all up for sale, gone on sale today. Getting out at the top or panicking as the top has been and gone???????????

:huh:

What do you clever people think of the rental yields.

If you had £350,000.00 sitting in a bank account and wanted to invest. So to provide an income, how do these compare, to the Jonny come lately lie to let 2 up 2 downs etc.

http://www.daltonsbusiness.com/business.as...D=1014&Sector=0

http://www.daltonsbusiness.com/business.as...D=1014&Sector=0

http://www.daltonsbusiness.com/business.as...D=1014&Sector=0

No scarcastic comments please regarding "if i had £350,000.00 in an account, i would.................!!!!!!!!!!!!"

Serious comments please. :D

P.S. Its just a question, i have no intention or the funds to make such an aquisition.

Personal story...not an anectdote.

I completed a sale on a commercial property at the start of the year. The little runt dragged the sale out quite a bit but eventually completed because my solictior was holding a non refundable 10 - 15% deposit and was threatening to 'non refund' it and put the property back on the market :D

That same property has been up 'for rent', 'to rent - may sell', 'for sale' since that time......

I wouldnt touch commercial property or residential for a good long time yet......but I did make an abosolute killing when I sold it :D:D

I did post this story up a while back and sent LR details to a couple of trusted HPC members just for verification of the details.

There is no such thing as a 'safe bet' in a recession......apart from cash.

If you've got 350k I would hold that money back and speak to the Bubb. Maybe get into some of his gold he's been going on about for ages - just now everyone has started jumping on gold as the next big thing....The Bubb was only about 12 months ahead of the game and I reckon he's made more money than me, TTRTR and Property Guru put together in the last 12 months.

I'm looking at Uranium at the moment but need more info first.

I dont care where my money comes from as long as it comes to me ;)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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