If you are new to the property investment arena or experienced property investor and are considering buying retail shops and shop premises then you might be surprised to learn that there are good opportunities to invest at many different levels in the retail property sector. It is also worth noting that shops and retail premises often offer higher investment yields, although there are reasons for this that we’ll touch on later.
Many would say that investing in property takes a lot of “bottle”, a bit of luck and requires an element of risk… but whoever got anywhere without all three?
Before buying into any property investment however, whether it be residential, retail shops or commercial property, you should recognise that to be successful you have to budget carefully, conduct thorough research to get to know your market well, and carefully weigh-up the risks involved.
Property Investment Risk
Risk is something that occurs in all walks of life and unfortunately is something that many of us have to accept, and manage carefully if we are to make a success of our activities.
With this talk of risk in mind, if you are not prepared to take even the smallest risk with your cash then investing in property is probably not for you.
However, if you are prepared to invest intelligently and take a calculated gamble, then it could end up working out for you.
What about Buying Retail Shops?
Investing in property does not stop at buying commercial buildings or residential buy-to-let property however, as many people believe it does.
Property investment of this nature also encompasses other types of property, including retail shops and shop premises, which just happens to be a type of property that more and more investors are seriously considering.
If you are serious about buying retail shops then you’ll appreciate that having a diverse property portfolio will also help to spread some of your risks and keep you ahead of the game – so never just assume that your only option for investment is commercial or residential buy-to-let property… buying retail shops is certainly worthy of consideration.
Economic Intelligence & Market Timing
It has to be said however, shops and retail property are often one of the most susceptible property asset classes to challenging economic times.
It is therefore important that property investors research thoroughly and time their investment and property buying decisions to perfection.
It is also worth noting that shops and retail premises often have very high yields because of this susceptibility to the ups and downs of the economy, so it is often well worth biding your time to get your acquisition timing just right.
Once the timing is right however and the economy starts to pick-up and people start spending on the high-street, there is absolutely no reason why investing in this class of property and buying retail shops shouldn’t be extremely fruitful for you as an investor.
Similarly, investment in retail property may also prove to be successful if you are lucky enough purchase a shop that already has a reliable tenant with a good part of a long lease left to run.
General Economic Factors
Investing in retail property is no different to any other area of property investment when it comes to the general state of the local and national economy.
For instance, if the economy is not in great shape, then shops will struggle to perform well.
However, you should be very aware of when things do start to look up and be in a position to take decisive action.
Investing in Retail Property for Success
Many investors think that as soon as people start spending after a dip in the economy then it is the perfect time to get into retail property… however, this is not necessarily the case.
Investment success typically depends on a lot more than just how much people are spending in the shops.
Location for one, is a very big factor. For example, even if people are spending money, the likelihood that a small craft shop on the edge of town will do well is still a long shot.
Remember, a good, highly trafficked central location for a retail shop is always best, so always approach any property investment with caution, and take into account all the facts that impact on property values.
If you take the time to conduct your research properly and plan your strategy carefully, there is no reason why you cannot be successful, whether it be in buying retail shops, shop premises, commercial property or residential buy-to-let.
Property Investment Solutions
As a leading independent property and land investment specialists Investment Property Partners offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.
If you are a property investor considering buying retail shops or searching for other commercial property, residential buy to let or overseas property investment opportunities please contact us today to discuss how Investment Property Partners can help you.
More information about the British Council of Shopping Centres (BCSC), the professional body for retail property in the UK… here →