How To Invest In Commercial Property! An Impressive £60K A Year Passively!

How To Invest In Commercial Property: In a recent video, I visit Worthing, West Sussex, showing you an incredible commercial property investment. My student refurbished an old shop into a high-yielding commercial and residential unit. Because commercial units can be fully managed and maintained by the leaseholder, this allows my student to make £60k a year passively!

If you want to learn how to invest in commercial property, watch this full case study until the end. You can find the video at the top of the page or on my YouTube channel. Grab a pen and paper, because this is one you will want to take notes from!

If you are an investor in residential property, you may be thinking about expanding into commercial. Commercial property can be a lot more passive, and therefore it can be easier to grow a portfolio.

In this article, I will take a look at how to invest in commercial property with examples from this case study. By the end of this article, you will be in a better position to decide if commercial property might be right for you!

If you are a property investor, you probably know other property investors looking to get into commercial property. Why not add value by sharing this article on your social media pages? Your followers will thank you!

1. How To Invest In Commercial Property: Full Repairing And Insuring Leases!

When you rent out a residential property, you are responsible for taking care of it. If there are problems with the property, your tenants will call on you to fix them. If there are a lot of unexpected problems, this can cut into your profit margins. Also, even if you have an agent managing the property, it will still require some of your time. This can be an issue when building a large portfolio.

Fortunately, this isn’t the case with commercial property. With commercial property, it is possible to let the unit on a full repairing and insuring lease. This means the business renting it from you is responsible for maintenance. This makes managing your portfolio much more passive!

2. How To Invest In Commercial Property: Permitted Development Rights For Commercial To Residential Conversions!

It is sometimes possible to turn part of a commercial property into a residential space, as was the case for the property in the video. Due to permitted development rights, it is often possible to do this without applying for full planning permission. Where permitted development rights apply, you simply have to inform the Council of your intended changes via a much simpler process.

This allows you to benefit from both a commercial lease and a residential rental as well. This can significantly increase your return on investment and push up the value of the property!

3. How To Invest In Commercial Property: Square Footage And Business Rates!

In the case study, the shop was too big to receive small business rate relief. However, by turning the upstairs into a residential flat and separating it from the ground floor, it now qualifies. This means, due to the size of the small shop, the tenants now pay no Council tax! This makes the property very attractive to businesses and allows for a higher rental income.

When looking at commercial property, consider ways to improve the property from the perspective of business owners. If you get this right, you will find excellent commercial tenants who will stay long-term.

How To Invest In Commercial Property And Residential Property!

Now that you know how to invest in commercial property, it's time to get some property training! Join me at my next £1 training event!

On the course, you will learn how to:

Become a property investor using other people’s money so that you can get started straight away
Utilise the 5 different types of raised finance so that you know exactly what to offer and when
Find the perfect properties for the BRRR strategy
Recycle your money so that you can ‘rinse and repeat’
Build a power team you can trust, so that you can save time and money
And much more!