Commercial Vs. Residential Property Investing

As a successful property entrepreneur Simon is often asked what his preference is and why when considering commercial versus residential property investment. In this episode, Simon shares the differences,  for a property investor, between purchasing residential and commercial properties and the processes any investor needs to understand. He shares some great advice based on his extensive experience and expertise as an investor on which is the best area to begin in if you are new to property investment and how you can extend your portfolio if you understand the processes and are able to work creatively with opportunities. There is great advice that will help investors who are at the start and those who are further on in their property investment journey, along with a very special offer, listen in and hear more.   KEY TAKEAWAYS For most people, residential property is the best place to start property investing because everyone understands what’s required in a residential property. Commercial property investing usually requires more money, although there are creative ways to invest in commercial property with low money down. It is vital that you understand, as an investor, that commercial property is more vulnerable to changes in the economy, whereas we always need places to live. You can buy commercial property within your pension. Your business then rents from your pension putting money into your personal pension fund. As a business owner if you invest in premises that can also be used by other companies then your business can be in the property for free. With the right deal, commercial property can be very profitable. With commercial rental, you are renting out the shell of the building and the tenant takes responsibility for the internal fitting. As a commercial property landlord, you have more rights than a residential property landlord. In commercial property, you can significantly increase the value of the property by increasing the rental income Commercial and residential property are valued in different ways Residential is based on ‘bricks and mortar’ valuations, where like for like are compared. With commercial it’s based on the rental income; the size and structure of buildings can be similar but if one has a higher rental income it has a higher value. There are more mixed commercial and residential property coming to market. You can work successfully with commercial properties if you understand the process and are able to work creatively with the opportunities.   BEST MOMENTS ‘I bought a number of care homes and then converted them into apartments and sold them on the open market’ ‘When you get it, right commercial can be far more passive as an income than residential investment’ ‘He spent 20 dollars on a property to increase the value  by 2 million dollars’   VALUABLE RESOURCES Property Magic Podcast Property Magic: How to Buy Property Using Other People's Time, Money and Experience by Simon Zutshi property investor’s network (pin) - www.pinmeeting.co.uk Download the pin meeting app here: iPhone:  http://bit.ly/pinAPP1 Android https://bit.ly/pinAPP2 Learn more about deal sourcing here: www.dealfindertraining.co.uk Learn more about comercial proeprty investing here: www.commercialpropertycourse.co.uk   ABOUT THE HOST Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk.    pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way.  How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.   CONTACT METHOD Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi  LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/