Millionaire Investments has seen a huge increase over the past two months in UK commercial property investment. Some are predicting the creation of another small bubble that is waiting to burst, but we beg to differ.
Commercial property has always been the steadiest market, and although the global recession has reduced prices, yields are on the up. Investors are looking for high yields and stable tenancy as the two main factors within their decision to invest.
MI now sees over a dozen new opportunities every day with yields on commercial from 5% to as much as 14%. Risk against return is priority in this market, and yes some will get fingers burnt if they do not do the due diligence. The investors we have come across are certainly shrewd in their dealings, but the market has turned slightly in the sellers advantage, so this is the time for caution.
As typical with any investment, it is about understanding the opportunity and doing the research. Commercials can be an unknown quantity and valuations are fluctuating more than most would like, so caution is at the top of the agenda in this market, but to suggest a new bubble is being created and about to burst would be premature.
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