Some investors are swapping residential buy-to-let for smaller commercial properties.

300x300_fitbox-blackburn_offices.jpegSmall commercial office units in the North West of England are appealing to investors. The higher yields of the commercial property marketplace are part of the draw.

An office unit of around 500 square feet can be purchased for under £90,000, with expected yields of around 8%. It would be hard to find an equal yield with a residential unit.

Commercial investors are also able to buy into property through their SIPP (Self Invested Personal Pension) and take advantage of all the financial benefits that this presents. 

As well as considerable income tax relief, SIPP investors will be free from capital gains tax if the property is sold and can look forward to collecting any rental income tax free within their pension.

Small commercial units also suit buyers who are keen to take a hands-off approach to their investment.  Along with a considerably lower tenant turnover, commercial occupants are also legally responsible for the upkeep of the property.

Assetz is launching a scheme of 30 new office units in Blackburn, starting at just £70,000.  Investors are invited to put down a 10% deposit on the properties, which come with a 12 month rental guarantee the forecast of an 8% yield.

The prime-located offices at 'Blackburn Gateway' will be fully managed and maintained by a professional management and letting company.  Investors will gain some extra security from the the three year leases to be signed by tenants. (Unlike the six month short-term lease of a residential property.)

Sq Ft says "Commercial property investment is best researched carefully with an expert tax advisor on hand."