Buy-to-let investors are increasingly being tempted to invest in commercial property as an alternative to residential property. Shops and offices are the most common investments and tend to attract higher yields even though capital appreciation isn’t always guaranteed. Commercial properties can have some pitfalls such as long void periods that make it important to conduct detailed investigations or take suitable advice.
Key Takeaways:
- The number of buy-to-let investors moving to commercial property has tripled in the past three years.
- Investors are fleeing traditional residential property and turning instead to shops, restaurants and offices.
- Yields of commercial properties are generally higher, and tenants tend to take on costs a landlord would have to absorb in the residential market.
“The number of buy-to-let investors moving to commercial property has tripled in the past three years.”