5 reasons to Invest in the Cardiff Commercial Property Market
If you are looking for a sound investment, you may have considered buying a property and renting it out. After all, there is a vibrant student housing market in Cardiff.
However, it might be more prudent for you to consider putting your money into the commercial property market in Cardiff instead. Here are five of the reasons why this would make a brilliant investment.
Redevelopment
There have been huge redevelopment projects in Cardiff in recent times as well as some major investments. For example, the Cardiff Bay area is virtually unrecognisable from the way it looked a couple of decades ago. The infrastructure has included shops, offices, and commerce centres.
There are some fantastic developments to invest in and you may be spoilt for choice.
Growth
Many people invest in property to make a monthly or annual income. However, you should remember that as well as the rent, you can also make money from capital appreciation over the term of your investment.
Property prices in Cardiff have quadrupled over the past 20 years and it has seen the highest growth in property prices over the past three years than any UK region outside London. A rising property market is the best type to invest in as you could see your capital appreciate quickly.
Rental Yield
The huge growth of Cardiff’s infrastructure makes it an incredibly popular place to do business. Many brands want to be in the area such as retail chains, hotel groups, and gyms and will pay a premium for the right location. This means that rentals are high and there is money to be made in the city.
Getting a competitive price for leverage is important because this will make you more of a profit. You can compare commercial mortgages through Quotezone to make sure you get the best financing for your investment and thus increase your rental yield.
Stability
Once a company moves into commercial premises, they are unlikely to want to move out quickly.
Consumers get to know where their local pubs and shops are, and these businesses know that they can rely on footfall to put money in their tills. This means that companies are often much keener on long-term lets than residential tenants which means that they can offer the landlord stability.
Diversification
One of the best ways to make your money work for you is through diversification. It makes sense that if you put all your money into one asset which then depreciates, you will lose your money. If you have money invested in the stock market, shares or savings plans, then investing in the commercial property market can be a wonderful way to diversify your money and make it work for you.
Investing in the commercial property market can make a lot of sense for a savvy investor and doing so in a buoyant market that is right on your doorstep is a fantastic way to minimise your risk.
