Here at Tarquin Jones, we don’t limit ourselves to one type of property in order to make our clients money. Residential and student property are the most well-known property sectors, but many people who target a high yield for their investments sometimes completely overlook commercial property as sometimes the more efficient option.
In today’s article, I will outline the different types of property in the commercial sector and highlight the pros of each investment method.
Hotel room investments give investors the chance of putting their money into an individual room in a hotel complex. Those operating the hotel itself handle the day-to-day running of it along with all the other rooms meaning you have a completely hands-off role in terms of managing it. The managing company who staff the hotel provide investors with a set yield that they will pay to you as the owner every month/quarter. The difference the hotel operators’ pocket as their fee for running your hotel room on your behalf.
Investing in a hotel room is an easy way of tapping into the tourism industry and how lucrative it can be provided you invest in the right location i.e. somewhere with a high tourism rate with lots of attractions. Yields are naturally high because of the lower price of the units when compared to studios or one-bedroom apartments in residential blocks. Cumbria Park Hotel is one such opportunity which fits the archetypal hotel investment.
Car parking investments
Car parking spaces are one of the most underrated forms of property investments out there right now. The principle is that you purchase a space and rent it out in order to make money. The demand for people to park their car in highly saturated locations like an airport is massive, and this lends itself well to securing regular and sustainable returns over the long-term.
This is usually one of the most affordable investment options out there, as the minimum cash balance required to invest with is a lot lower than most other forms of investments in different sectors. For example, the Glasgow Airport Car Parking investment opportunity has spaces going from £25,000, making it an ideal option for anyone with a limited cash budget.
Office space investments
Office space is highly sought after by both new and established companies and businesses, especially of course in locations that are economically strong with high employment rates. Purchasing office space in a complex that businesses house its employees in is a great way of securing high yields due to the low price of the suites.
The business renting out your office suite will pay you your returns. Again, the low price of smaller office suites leads to a high yield on purchased units there as opposed to say property in the residential sector. So for those looking for an affordable investment options with a primary goal of obtaining high and sustainable returns, office space investments are a great option. Regent 88 Liverpool is a good example of this.
Care home investments
With an aging population in the UK, more and more elderly people are moving into care homes later in life. With this kind of growing demand, it’s no wonder investors are turning to property in this sector to achieve their investment goals from an ethical standpoint.
Due to the highly sensitive and important nature of care, the health and social care sector is a highly-regulated industry. The Care Quality Commission (CQC) are the independent regulator responsible for monitoring, inspecting and regulating health and social care services in England.
Because of the CQC’s regular inspections, most care homes are kept to the highest standard in terms of living space and building quality, meaning that any investor buying a room in these can expect very little to go wrong from their perspective. It’s a completely hands-off investment sector that is left in the hands of the professionals both on-site and from the regulators. Plas Y Bryn is one of the best care home opportunities up-and-running currently which fulfils everything mentioned here.
The best investors are open minded in their property search, and don’t necessarily limit themselves to one form of investment sector. All of the forms of commercial property listed here are great for high yields, but by diversifying your portfolio across all sectors, you limit the potential damage that adverse market conditions can affect your investments. For example, new government measures could hit property in the hotel sector and if you’ve put all your eggs in one basket there, your entire portfolio will suffer.
Consider investing in the variety of sectors mentioned here to diversify your investments and keep a widespread cashflow across property in different sectors.
For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at email@example.com for more details.