There are a number of strategies available to the commercial property investor.

The appropriate strategy depends on number of factors such as whether you wish to buy land or buildings for development or completed commercial property suitable for immediate leasing or with an existing tenant. These decisions will in turn be dependent on the preferred lifetime of the investment and the desired level of risk. Below we present 3 simple strategies for investing in commercial property and land, purchased for residential development.

Fortunately, Validus has an excellent network of legal partners in all target countries, which, where required, ease the process of establishing ownership, dealing with third party claims to land and government bodies such as agricultural agencies.

Many transactions will not entail such complications, and Validus’ partner lawyers have completed many such property transactions.

Short-Term Package

• Purchase off-plan or empty commercial property
• Find a suitable tenant
• Resell for a higher price

This simple method is possible because the capital value of commercial property is determined by the rental income of the property. When tenanted, the rental income is more secure that its prospective rental income when empty, hence a higher sale price can often be achieved (all else being equal). Validus can co-ordinate all stages of this type of investment.

Long-Term Package

• Purchase tenanted commercial property geared using a commercial mortgage
• Hold the property for the length of the mortgage (which can be significantly shorter than UK and Irish residential mortgage periods)
• Retain the property as an income stream when the mortgage is paid off
• Validus can manage the property

This longer-term, hands-off approach may be suitable for investors wishing to build up a portfolio or invest using a SIPP (see our SIPPs section to find out more). Whatever the decision, Validus can co-ordinate all stages of this type of investment.

Developer Package

• Purchase land or underdeveloped property (for example, a building needing renovation)
• Develop land and/or building using the Validus Developer Service
• Find a suitable tenant
• Sell the property / hold it as an income stream

This method is generally a longer-term investment, and may be more involved. However, potential returns are normally greater. Validus can co-ordinate all stage of the investment.

For further information about investing with Validus, call us on
020 7517 0580, email ask@validus-invest.com or register here.

view disclaimerPlease note: As with all investment property purchases, you are advised to take proper financial and legal advice at all stages. Investment values can decrease as well as increase. The content of this website is for informational purposes only, and readers are advised to speak to qualified legal experts and financial planners before taking any action. The information, tables, projections, and estimations provided by Validus are for indication only and do not represent factual information unless otherwise stated. The information is supplied without any guarantees whatsoever.