Increasing numbers of buy-to-let investors turn to commercial property

This shift in emphasis has been recognised at this year’s Property Investor Show (17-19, September 2004 at London’s ExCeL) which has a special focus on commercial property investment.

Expanding Portfolios

New research from one of the Show’s exhibitors, leading investment property mortgage broker Mortgages for Business, shows that 89% of investors who currently do not invest in commercial property have plans to widen their portfolio to include commercial properties. The benefits of investing in commercial property are confirmed in a survey commissioned in a survey commissioned by the Property Investor Show which showed that over three-quarters (76%) of property experts felt that commercial property had been the best performing asset class over recent years.

David Whittaker, managing director at Mortgages for Business says, “The residential buy-to-let market has seen a tightening in rental yields over the past year with more and more investors taking a long-term view towards capital appreciation. Securing investment finance for commercial property has probably been the largest barrier for most would be investors. However, there are now a number of new investment products on the market offering ‘off the shelf’ mortgages similar to those for the residential buy-to let market.”

Nick Clark, Managing Director of Homebuyer Events, organisers of the Property Investor Show adds: “Our show has traditionally focussed on the residential market, but with an increasing number of investors looking at opportunities in the commercial sector we have made the sector a significant focus for 2004. However, there are distinct differences between the consumer and residential markets, so we’d advise potential investors to seek advice at this year’s show.”

Student Buy-to-Let

Residential and commercial developer Bournston has also recognised that traditional buy-to-let investors are looking for other opportunities to maximise their returns. The company, another Property Investor Show exhibitor, is the first developer to create a purpose built student buy-to-let scheme. The Government’s plans to get half of school leavers into higher education by 2007 has led analysts to believe that this buy-to-let sector will blossom because the huge demand created by the significant shortfall in student accommodation.

Expert Advice

The Property Investor Show provides expert information and advice on all aspects of property investment (both residential and commercial) from financing your purchase, buying new property or investing overseas. There are over 200 exhibitors confirmed for the event plus 100 seminars covering the full spectrum of property investment. Among others commercially focussed seminars include: