Freehold shop houses can be a very desirable investment for a range of reasons. Firstly they are a great example of a up to date building that has not been fully occupied and so offers a relatively ‘new’ feel. This can be both a good thing and a bad thing depending on your situation. Whilst it is not necessary that a freehold should be left completely vacant if the owner intends to sell, it is quite common for them to remain unoccupied for long periods of time due to the general issues surrounding them. If this is the case then the purchase of one of these buildings is a very good investment as it will likely be a low cost purchase and offer a great return on your money.
As a result of the unoccupied nature of the property, the supply and demand aspects of the market often dictate the value of a freehold house. These buildings are generally available at either auction or open sale. At auction the value of the property is determined by a number of factors which include the age and condition of the building, any previous occupants, its location and more. This can be a quick and efficient method of determining the value of a freehold because the auction process works by selling off all available properties at once.
There are some people who choose to purchase freehold properties as an investment strategy and use them to create rental properties. If you intend to do this then you may want to look out for a type of freehold known as a ‘mature’ freehold. These buildings have been fully occupied and are generally in a decent condition. Mature freeholds usually command a better price than similar properties that are still under occupation.
One important point to consider when buying a freehold property as part of your investment strategy is the impact that planning regulations may have on your purchase. If you intend to buy a freehold house as an investment, it is a good idea to ensure that planning is strictly followed. Planning permission is not always required but it is often required if you wish to erect a road or other structures in the area of the freehold. It is usually also necessary to get planning permission for a waterline installation, electrical installations and other types of developments that will impact on the surrounding area.
If you are considering purchasing freeholds as part of your investment strategy, it is very important to find out whether or not they are suitable for your needs. Some freeholds are perfect for some businesses but not others. For example, a hospital might require planning permission whereas a shopping centre would not. Therefore it is important to look carefully at what you intend to do with the freehold before you buy it. Do you need the freehold to make money from it or are you only looking to let it out?
Another area to consider carefully before you buy a freehold is how much money you can borrow. If you are only looking to invest a small amount, a single tenant flat may be just right for you. However, if you intend to buy a freehold that will soon become your main source of income, then you need to take into account any possible future changes to the law that could affect your investment strategy. For example, if there is to be a rise in house prices you could lose your rented accommodation if you choose a scheme that comes with a fixed rate of rent. In order to make sure that you make the best investment decisions, it is crucial to think carefully about your investment strategy so that you don’t end up being blindsided by unexpected factors such as changes in planning law.
There are two main types of investment property: the leasehold and the buy to let (It’s). A leasehold is a type of freehold, which is owned by the occupier. A It’s scheme means that the occupier (who is in fact the landlord) buys a part of the freehold and then lease it out. Both these types of investment strategy have pros and cons. For example, a leasehold is more secure than a freehold because you can be sure that the land will not be left empty. Also, a leasehold may allow you to build up equity so that when the time comes to sell you will be able to get a good price.
However, the pros of a freehold far outweigh the cons when it comes to this type of investment strategy. Firstly, a freehold allows you to purchase the most expensive property without having to come up with any money up front. This allows you to build up equity quickly which can be used for building homes, buying Btns, or whatever else you wish to do. By buying a freehold, you are also not restricted by any planning laws in any way – you don’t need planning permission for building anything above a certain size or if you are adding on anything to the property. Finally, your investment is not bounded by tenancy laws at all so you can leave your freehold for as long as you like.