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Which should you choose, residential or commercial property?
The differences in residential and commercial property can be fast and when deciding which one to choose for your next project or to add to your portfolio you should consider many factors. The key factor being firstly that each property type has different tax implications and also stamp duty rates. The government has made it increasingly difficult for commercial property buyers to get involved in the market particularly on the bright light and retail areas. With existing market factors such as coronavirus the commercial and retail industry has taken a very hard knock and it should be factored in to your considerations when embarking on a purchase.
The retail industry particularly has undergone some big changes with many shops and large businesses closing in the retail space and although this has given rise to many below market value deals there are considerably less shoppers out on the streets. This reduced foot flow has caused many towns and retail parks to see a massive drop in business and as the prices have been falling. The key is to weigh up the differences and balance the decreased market value with the prices that are available in the market. As with any property related endeavour it’s always beneficial to try to purchase any property off market if you can and avoid the competition through estate agents and auction houses.
Regarding the tax and stamp duty differences there will always be the need to speak to a qualified accountant and also a solicitor before in Barking on any purchase. As with the buy to let industry the government over the years has made it more difficult and costly to attain regular income through these property types and development as always had a more light touch approach than any income producing properties has. This should certainly be a key consideration before agreeing to buy any particular property in the commercial sector.
When it comes to residential again if it is not income and it’s for development then you will get much more favorable tax implications and terms and this should always be considered. The Matthew Cullum property blog will always provide key information regarding each market sector and it should always be a consideration to weigh up the pros and cons of each area. Property development has always been a market that has provided decent profit margins in good areas and location location location is always key as well. There are also many incentives such as the help to buy scheme which will benefit developers when selling the end units to end users and these can be researched and taken advantage off at the moment. Please register for more information we will keep you abreast of any market changes and news relating to residential and commercial property.
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