Commercial Property investment

one of my friends and fellow investors has been offered a small commercial property down the road from where she lives. i’m not sure why but she always seems to purchase properties that are within tumbling distance to her own home. she and her partner have her home, the house next door and also one across the street. i don’t think it’ll be too long before they own the whole street!

anyway the commercial unit that she has been offered is currently being built with flats above. its part of a new development of 6/7 new apartments with secure parking and also one commercial unit on the ground floor. the commercial unit is about 45sqm and has been valued at £140-150k but is available for £130k ish at this stage. rents wise looking at others in the area i would expect £9-£10k per annum so the yield looks good. if we can buy it at £120k the rental yield would be 7.5%. ROI will not be too great either especially as we would need a commercial mortgage on the property and these typically have rubbish rates and higher (20-25%) deposits required.

i’m not too sure of the calibre of the tenants that would occupy the property would be brilliant. its likely to be a local retailer or hairdresser type of business. i would like to try and obtain permission to sell food at the premises, but chances of getting approval are not great. If we can get a higher calibre tenant in the property then i think that we should easy be able to sell this for profit or refinance to release our capital. otherwise it will be a long term investment that ties up a lot of liquid funds.

i wouldn’t otherwise consider this property but i have decide that i am going to increase my commercial portfolio this year so i am taking a keen interest into commercial properties. oh and i forgot to mention that my friend has asked me to go halves with her as a joint venture (JV).

Anybody else have any Commercial Property for sale?