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Retrun On Cash - Commercial Property Is North Of 7%

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Surely someone who is cashed up, why would they stick a five figure sum in the bank. The link above gives some return?

What buying or purchasing costs would stack up when buying a builings freehold, allowing the tenant to keep running his business as an ongoing thing. I think the above is just buying the leashold and recieving 40k a year for 999 years if i am correct. But still a good buy when looking at 1.2% return on cash. Do you pay VAT or tax when buying commercial property.

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Some archived data, if landlording is your type of thing. Money offers options for when capital values slide, yields don't look quite as good, and other costs need paying.


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When the next crisis hits you will struggle to liquidate your investment in commercial property while you watch in horror as values fall rapidly. That's what happened last time round.

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Their is a prime piece of freehold commercial property in Ashford, Kent up for sale that to my eyes looks an incredible bargain.


However looking into it in more detail - a quick scan of the High Street shows lots of closed shops, there are 4 lots of business rates payable on the units within the building, it only currently has planning permission for office use and there are also lots of empty offices.

I wouldn't touch commercial property in a deflationary environment.

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7% gross yield on any property is sh#t

Fill your boots

aren't commercial landlords liable for rates now even if the place is empty.

That's my general understanding too; there's too much complication involved for me with com-prop; final responsibility for rates (as I understand it) leases, repairing leases, dilapidation claims, disputes, costs of maintenance, insurance... even if I didn't have an objection against putting costs on traders, when much should be done to ease new businesses to form and establish themselves.

On the 2011 auction details (link above), 2 of the units tenanted by a charity. (HQ and a shop maybe), some hairdresser, and possibly a bar-restaurant + garages at the rear and a bit of ground rent for the flats above.


A quick check on the address for the hairdressers suggests a rateable value of £7,000. http://www.2010.voa.gov.uk/rli/en/basic/find

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