Is commercial property now a better option
I am noticing that an increasing number of the landlords that we support are choosing to move away from residential property and investing in property types that have a more favorable tax situation, such as retail units and small commercial developments. They also claim that commercial tenants are less stressful and take up far less time, with longer duration between switching tenants
Many property investors are moving away from traditional buy-to-let property purchasers and choosing instead to acquire commercial units, citing not having to pay the 3% stamp duty surcharge that was introduced on 1 April.
In addition to the above the fact that permitted development rights have been made permanent and that rates on business and retail units have been relaxed, have also helped to entice more property investors to consider buying commercial units.
It is interesting that many of the financial institutes have already identified this trend and offering additional packages to suit.
It seems that the Chancellor’s increases on buy-to-let taxation and the relaxation of tax on other property types has resulted in a shift of focus for the entrepreneurial landlord.
Have you considered becoming a commercial landlord as it has some distinct advantages over the residential sector and it may not be that big a step if the property is a mix of retail and residential? Industrial and office units can also be acquired to grow a portfolio on terms that may be more beneficial with higher income and asset value.