Property Investment
Having spent many years as
property investment consultant to a major insurance company and its associated pension funds, we have wide experience of
investment in property and property portfolio management. To maximise income
and capital growth from all forms of commercial properties requires active and
positive hands on management. We have advised upon properties as diverse as
large multi storey office buildings, industrial estates and shopping schemes
throughout
The banking crisis effectively put an end to the previous years of relatively easily accessible finance for property investment. The earlier recession in the property market resulted in a very considerable drop in tenant demand and as a result a high proportion of hitherto eminently lettable properties came on the market and remained available. The impact of loss of income and the cost of maintaining vacant properties has resulted in a lot of property investors becoming aware of the downside of property investment in a recession. These downsides include:-
Vacant rates, made more punitive under the last administration,
Security, with the value of copper wiring and pipework in vacant premises acting as
a lure to potential thieves,
The costs of returning property to lettable condition after a tenant has gone into liquidation and
The general deterioration of properties when unoccupied
all militate against potential investors coming into the market for property. In these circumstances the quality of tenant has become of vital importance. The only real question an investor needs to ask is "can they keep paying the rent". Even public companies are not immune to failure in today's economic climate. There seem to be little signs of improvement in the immediate future.