If you want to invest in a tangible asset, a commercial property investment is an attractive option.
While the value of stocks and shares can fluctuate widely, over time property is shown to hold and increase its value.
Purchasing a commercial property can be a lengthier process than buying residential property, with due diligence needing to be carried out on more areas, including tenancy agreements, services charges, and VAT implications.
And, of course, bricks and mortar are not a liquid asset; if you need to sell, you won’t be able to do so as quickly as you would if your investments were in stocks and shares.
Using commercial property as a pension-related investment
Commercial property investment is particularly appealing for businesses which want to own their own premises and then benefit by paying themselves a commercial rent as opposed to paying a third party landlord.
It may also be possible for company directors to adopt a pension-led investment option for a commercial property purchase, by setting up a SSAS (small self-administered scheme). Here, the rental fees the business incurs are paid back into the pension fund.
There are many options regarding commercial property investment. Please talk to the Hartsfield team about them.