News

In the commercial finance world and business in general in the UK, and globally for that matter, the rules, calculations and parameters have changed, leading many to be a little more creative and smart with finances. I’m certainly not going to advise what we believe to be a good or bad investment, or give any investment advice, but will comment on what we’ve seen and heard from our clients, from our introducing partners, IFAs and brokers.

The feedback…there are smart ways to make your money work harder in property and versatile finance solutions that meet individual needs.

Investing in commercial property

Putting your finances into property has arguably always been about smart investment, but investing money and seeing a return in a short space of time appears to be harder to achieve than ever before. Whilst the commercial property market has been challenging, and continues to have its challenges, in many cases it has proven to provide investors with a higher yielding cashflow asset compared to more traditional vanilla BTL investment property. To realise that investment in the commercial space, investors need to be comfortable they are able to manage such an asset inclusive of all associated variables, consider which developments are likely to yield greater amounts and choose finance solutions that can deliver.

Semi-commercial property investment

The semi-commercial property market could also be a way to make money work harder backed by tailored specialist borrowing. Mixed-use projects are growing in popularity and clients thinking of using capital to invest in developments with residential and commercial incorporated (often retail, leisure or offices), have proven popular with clients in the last 12 months. Feedback suggesting investors have seen a healthy return on their money. On greater scrutiny, some of our developer clients have suggested large-scale developments that offer modern housing along with shopping, and leisure facilities have consumer appeal and provide sound investment opportunities. Backed by government initiatives that have relaxed some of the rules around permitted development and residential dwellings, these mixed-use projects can see money work harder for investors provided the correct advice, planning and commercial finance is in place.

Commercial property finance solutions

If you are thinking about purchasing or investing in a semi-commercial property that comprises both residential and commercial elements, this may well feel overwhelming and complex. In these scenarios, possibly more than any other, it’s crucial to work with a professional broker to obtain the right funding that can take on board all variables, such as capital requirements, property type, split in valuation or footprint across the sector types plus a thorough professional assessment of the risk areas in terms of your funding.

In summary:

• Always ask the question and explore what alternatives might be available.
• Consider these other property investment types and use our free initial advice to ensure you don’t dismiss progressive and innovative commercial projects.
• Ensure you are working with a broker that can navigate complex uses within semi-commercial and commercial sectors.
• Be mindful that some lenders don’t sell directly to the market and operate through an exclusive introducer base.

If you want to have your money work harder and smarter, talk to the team at Omega today and let us tailor a solution on any commercial investment.