Commercial property can provide lucrative returns for investors and is attracting more attention from residential property investors who are looking to diversify their portfolio.
Making the leap from residential investment to commercial can sometimes seem daunting, but there is a middle-ground, and we’re seeing an increased demand from investors for semi-commercial property.
Semi-commercial contains elements of both residential property and commercial property – so, for example, a building that contains a shop on the ground floor and flats on the floors above.
This increased demand for semi-commercial is being met by greater competition between lenders, and we have access to a number of lenders active in semi-commercial that have made recent improvements to their propositions. For example, one lender has recently cut its rates and reduced its debt service cover from 150% to 130%. This approach provides investors with a range of options to structure finance in a way that best suits their requirements.
If you have clients who are interested in diversifying their portfolio and you want to leverage the relationships and expertise we have at Brightstar, get in touch today – we’ll be happy to discuss how we could help your clients invest in semi-commercial property.