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by: Jason Cohen
Peter Bill,
Editor of the Estates Gazette as well as 7 others experts in UK
Commercial Property investing have teamed up to talk about how to
successfully invest in UK Commercial Property.
Fiona Goldman recently interviewed Peter Bill, editor of the Estates
Gazette.
Asking Peter Bill what his thoughts are on the future of the UK
Commercial Property Market gives any prospective commercial property
investor a real insight into where the UK market is heading in the
next few years.
Fiona asked Peter "Would you say Great Britain is still a buoyant
market to invest in with regards to property"
Peter replied "Yes I think it is, as we speak I think its been
buoyant now for 8 or 9 years.
Is it slowing down? This we keep saying it’s going to but every year
it keeps going up. If you can imagine a very tall glass filled with
water on one side of the table and a very short glass filled with
water on the other side of the table. The small glass for the amount
of property that there is in the world and tall glass for the amount
of money chasing it. At the moment there is probably 10x as more
water or money as there is to property to buy. So there’s a massive
over supply of money to property at the moment so that’s what has
been driving it and will continue to drive it, its completely
globalised now."
This is great news for any prospective commercial property investor
be they novice, intermediate or advanced investors in residential or
commerical property investing in the UK.
To emphasise the benefits of investing in the UK Commercial property
market right now, Stuart Law, founder of Assetz Finance, mentions
his experiences in UK commercial property investing and why he
thinks now is the time to invest in the market. Stuart say
"Commercial property could also be new built student halls which are
carved up into individual student apartments. That’s a particularly
low hassle and a longterm investment and that’s generally high
income as well. With commercial property, there really is two ways
you can go in. You can go into commercial property by sector, so
retail, shops, etc, offices or industrial. But another way of
looking at is, whether or not the property is tenanted or
untenanted, its very important to understand that with commercial
investment its not been done before, but when you buy a property
with a tenant in place, you’re paying a premium for the lease. The
lease is the promise to pay, each year, four quarterly payments of
rent. If you buy a building with out that promise and without that
tenant in place, then you are just buying bricks and mortar. And
when you buy bricks and mortar with a lease, you pay more."
Issues such as taxation are important to consider when investing in
uk commercial property. Amir Saddiq founder of the Property Tax
Portal says "Say somebody purchased a property for £50,000 five
years ago and its now worth £150,000 which is quite feasible, they
may well have to report property values and they maybe liable to pay
tax of upto 40% on the £100,000 profit. They have only got 25% left
of equity on the property but they could have tax liablilitys as
high as £40,000. So there the kind of areas that Daniel Feingold iin
particular would start to get involved as he could help restructure
people’s assets and give them the development advice they require"
Daniel Fiengold head of a leading independent tax consultancy in the
UK, called Strategy Tax Planning said "Correctly structured, tax is
only 22% in the UK. If you borrow to acquire a property you can
offset the interest so it starts to slide down from 22% so a lot of
people are effectively paying something like 10 or 11% tax on their
rental income which is obviously a very attractive rate, a very low
rate and in addition paying no capital gains tax. It provides a
very, very exciting investment opportunity for them but its all
about getting the right structure from the start. If someone comes
to me saying I’ve bought a property then alarm bells normally ring
but if someone comes to me saying I'm looking, I'm considering, I'm
about to, then its normally the point at which I can give the right
advice and get them in a position to minimise their UK tax
liabilities.
Copyright 2006 Invest UK Publishing
About The Author
Jason Cohen has interviewed exclusively Peter Bill of the highly
respected Estates Gazette and Stuart Law of Assets Finance and Amir
Saddiq and Daniel Fiengold of Propety-Tax-Portal as well as many
other commercial property experts for the UK Commercial Property
Investing Training Course which reveals over 4 hours of audio, the
best ways to invest in UK Commercial property even if your a novice,
intermediate or advanced property investor.
For more information and to get their free audio download on how to
Invest in UK Commercial property profitably, visit
http://www.investukpublishing.com/propertycourse.html
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