Why Purchase Freehold?
Purchase Your Own Freehold Workshop/Warehouse/Trade Unit.
Investing in your future doesn’t have to be through Equities, ‘Buy to Let’, or Bonds. Industrial property can also be invested in directly and many people have taken advantage of this and are receiving higher returns.
We have sold many buildings to individuals who are utilising their pension funds to acquire the property then are renting them back to their trading companies, creating attractive returns for their pension funds.
Industrial property has shown a much more steady growth curve over the last 5 years than other property investments i.e. housing, offices and shops.
Rents have grown but not with the high peaks we have seen in other assets, yields remain attractive.
In Southern England demand for economic industrial/warehouse space remains high, supply remains poor particularly for small units and buildings that do not require expensive improvements. There is very little development of such space and we forecast this will continue in the medium to long term even more so with the current credit squeeze.
The Equity market remains a mystery still to many investors looking to maximise their pension funds. Buy to let looks over valued and is now subject to new Capital Gains Tax provisions.
Although there has been a correction in industrial property values it has been at no where near these levels due to the healthy supply/demand ratio's and more importantly due to the steady growth in values during the boom years.
Occupiers renting from institutions are nearly always stuck with onerous lease conditions which are in fact more stringent then owning the property freehold. Conditions include, full repairing leases, long terms, upward only rent reviews, it goes on and on.
Newly available to the lending market are longer term mortgages and a number of our clients have acquired buildings with the benefit of these facilities.
Owning your property is therefore
* Tax efficient
* Creates a fixed known overhead expense for many years.
* An asset for the company
* More flexibility in disposal terms should you expand or downsize, you can sell or rent the property, Try selling the remains of an institutional lease!
Repair or don't repair its up to you. How many companies end up with huge dilapidation claims at the end of their lease? nearly all of them.
In the medium to long term we anticipate the continued growth in values for this type of asset but of course occupiers also have the benefit of running their businesses from economical accommodation and this we believe will become a fundamental requirement of individuals and companies over the course of the next economic cycle.
At Thorneycroft we continue to seek suitable properties that meet our business model and we believe that in the medium to long term our economy will continue to grow again, interest rates will remain historically low and the new coalition government will continue to support the economy and will endeavour to create an environment where business and enterprise can flourish.
We are also confident that continued investment will take place in the countries infrastructure including airports, roads, public transportation etc. A prime example of this will of course be the Olympic Games in 2012.
Thorneycroft have a number of properties throughout southern England available freehold or to let with our easy in easy out licences.
Financing your purchase
If you are considering purchasing a building and require finance, then please contact Chris Stevens at Royal Bank of Scotland to discuss your requirements in further detail
We are also happy to advise directly on the sourcing of suitable commercial mortgages and would be happy to make introductions to well known lenders where appropriate and subject to status.
(o) 0161 862 8077