Is this a good idea or not!!!!

prudryden

pioneer wrote:

Hindsight is a wonderful thing as is perfect market exit and entry timing.

Assuming property has been overdone other than a fools rally and upside is limited, which markets/sectors/funds do you seriously think provide 5 yr 100% growth potential with limited risk, and remember I hate catching falling knives.:rotfl:

Commercial property on a total return basis.

pioneer

prudryden wrote:

Commercial property on a total return basis.

What part of the word property did not u understand?:T

prudryden

Commercial property vs. residential property has had completely different growth trends. Whereas residential property has a spiked chart, commercial property has a steady elongated trend and is considerably undervalued relative to residential property. The rental returns are much better. In the past, many older buildings have been converted into residential flats, developers are now looking to convert these older buildings, such as hospitals, into commercial offices. The time is right to do the switch.

pioneer

prudryden wrote:

Commercial property vs. residential property has had completely different growth trends. Whereas residential property has a spiked chart, commercial property has a steady elongated trend and is considerably undervalued relative to residential property. The rental returns are much better. In the past, many older buildings have been converted into residential flats, developers are now looking to convert these older buildings, such as hospitals, into commercial offices. The time is right to do the switch.

Assuming that I am being dragged down the property path yet again, tending to be influenced by Technical analysis rather than chartist techniques I do not have sufficient information to quantify your suggestion. My gut feel is that commercial property is having a hard time at the lower end of the market, take a look at your average high st with vacant shops etc. Competition comes at the high end of the market i.e. Bluewater, Industrial type commercial parks etc which are mainly owned by private equity firms.

I am sure that the average REIT investor does not have that much control over which investments are chosen, they are relatively new to the average punter and Gordon would love you to invest in them, I just don't want the crappy ones.

From a contrarian angle I will take your advise, do my research and keep an eye on them. Who provides your REIT and do you know what your invested in ?

Alan_M_2

prudryden wrote:

Commercial property vs. residential property has had completely different growth trends. Whereas residential property has a spiked chart, commercial property has a steady elongated trend and is considerably undervalued relative to residential property. The rental returns are much better. In the past, many older buildings have been converted into residential flats, developers are now looking to convert these older buildings, such as hospitals, into commercial offices. The time is right to do the switch.

I don't know where you get this idea, I've never seen commercial property so expensive and occupancy rates so low.

I'm currently moving into a new warehouse, the prices are so obscene that business are quite literally being busted by rent increases (sometimes double and treble what they are paying).

If you think domestic property is expensive actually go and find a warehouse and take a look at the value.

An average new 3000 sq/ft unit with B8 permission where I am based is a minimum £500K and I need 5000 sq/ft (which was over £1 Million).

Commercial property is currently making domestic property look cheap, that's how out of whack it is.

An if you think council tax is a tad expensive, just take a look at business rates.

pioneer

Alan M if your still around we were bang on the money !

Interesting thread.

Now what was that about Commercial property.


Those funds are looking extremely cheap.