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Commercial Property Plunges – Good News or Bad?
The commercial property index just seems to keep falling. In fact, during 2008, UK commercial property values fell by a record amount according to Investment Property Databank http://www.ipd.com/ whose UK Quarterly Property Index showed that commercial properties lost 26.4% of their value last year - the most since records began in 1987.
This is terrible news isn’t it?
Well of course it not - unless your business is in investing in commercial property. If it isn’t, then the fall in prices should either be irrelevant if you’re already trading and have no urgent need to borrow against the property – or an opportunity at a reduced price if you’re looking to buy. So really; why worry?
If you need a commercial premises - either to expand or establish your business, then buying on others’ weakness is a strength for you. And remember, you’re unlikely to be able to pick the absolute low point of the market. If the figures make sense for your business, go ahead and buy, forget about the price movement after you’ve bought, and concentrate on what you’re good at; your business.
But if you are considering a commercial property, be sure to take expert business finance advice in plenty of time. Experienced advisers should be able to give you a considered view of the market, a reasonable offer to make at the moment and, more importantly, tell you what the best finance deals available for commercial mortgages are. And with interest rates at record lows, there are some excellent deals around.
Commercial mortgages are available for different purposes such as own-use commercial property, investment, residential development, commercial development, business purchase, re-finance of existing mortgages - or simply to raise additional funds for business needs. They cover a wide range of properties such as offices, warehouses, shops, public houses, restaurants, farms, hotels and guest houses and investment properties.
An adviser with a long track record in finding the right deals should be able to advise you on everything you need to consider.