Is now the right time for Private Investors to buy Commercial Property

Timing is Everything – Commercial Property Investment?

The commercial property market is ever changing and trying to predict the “Top” or “Bottom” of the market is always a challenge for not only investors but also for us as their property advisors.

We get this question all the time –

“What do you think? Is now the right time to invest? Has the market bottomed out yet?”

The truth is, you never know when the top or the bottom of the market is until sometime after the event. Hindsight is 20/20!

Is it a good time for private investors looking to invest in commercial property to start getting active? We believe so.

Pricing has adjusted to a point where vendors and purchasers expectations are meeting. We are seeing some good opportunities, which coupled with more flexibility and choice from lenders, is delivering a more active market.

If you are considering investing in commercial property,  there are a few key points to keep in mind;

The Current Market

Currently there are some good options for potential for investors with €1m to €5m to spend. This includes mixed use (e.g. retail with apartments overhead), offices, industrial and retail properties. Yields and pricing are fair (following adjustments) with some consensual borrower/lender sales offering great value.

Understanding Costs

Before buying, it is essential to understand the various costs involved with commercial property investments. Besides the purchase price, investors must consider VAT and Stamp Duty. Additionally, there are service side costs such as surveyor and legal fees that can add to the overall initial purchase price and effect the net initial yield calculations. Your own personal tax situation is a factor as the receipt of rental income is subject to tax. Your financial advisor has a role to play here.

How Murphy Mulhall Can Help

We’ve been helping private investors buy and sell commercial property for over 25 years so we have seen various cycles in the market and know what’s involved in a purchase/sale scenario. We work extensively with private investors. We understand that commercial property investment might not be their day-to-day job, and that’s where we help.

Our “One Stop Shop” advisory service guides you through the entire process, from identifying the best market opportunities that meet your select investment criteria and desired return profile.

Our support doesn’t end with the initial sale. We stay with you throughout your investment journey, advising on the best time to sell, helping you maximise your returns. We can also provide asset management advice ensuring your property investment is at all times maximising its potential.

Take the First Step – Call us.

If you’re interested in exploring commercial property investment further, give us a call. We’ll assess whether this is the right route for you and provide a detailed breakdown of each step involved. Our personalised approach ensures that you have all the information you need to make informed decisions.

Author: Brian Gaffney