A year on from the 2008 banking crisis, it is evident that the property market has clearly moved out of the bottom, as investors are once again ploughing money into bricks and mortar as low interest rates offer very little to savers.
Judging by the number of new faces in the commercial auctions we are seeing a lot of investors desperate to buy into low risk and very secure investments. The results indicate that this type of stock below the £2M mark is in limited supply and investors are having to paying big premiums to acquire them.
Many people expected there to be bargains this year, however this is clearly not the case as demand by the cash investors is driving up the prices. One area which offers buyers a healthy return is for investments where the deal sizes are over £3M as there is a liquidity crisis at these levels due to lack of financing particularly for new customers.
During these times Prideview Properties is still very active in sourcing the best commercial property investments and continues to find the most competitive mortgage rates for our clients.
As asset management is top of the agenda for many investors, we have set up Pride Management to take on board the management of the properties from residential to commercial. It offers the option to clients to add value to their investments via means of re-gearing their leases using tenant incentives to undertaking rent reviews, repairs as well as lettings.
We have set up an alternative means of investing into property by way of a consortium, enabling investors to achieve healthy returns on their equity with the benefit of a low entry capital requirement. This option involves investing indirectly into large scale properties with relatively low risk allowing investors to take advantage of the better returns on offer for the properties above the £3M mark.
Lastly we provide our clients with the option to dispose of their properties through our website and our extensive network of investors both private and public to achieve the best prices for them.
By Vishal Patel