Pensions v. Commercial Property and Commercial Mortgages

Pensions v. Commercial Mortgage Property

Lucrative returns, increasing commercial rent prices and prospects of large capital gains are combining with the increasingly bad press pensions schemes are receiving, to inspire people to look to investing in commercial property to fund their retirement.
People are being tempted into commercial property investment directly by the short-to-medium term return from rental income, covering the mortgage payments and providing additional disposable income. Whilst, in many cases, the appreciation of commercial property value is to such an extent, that long-term investments (10-15 years) are easily funding 20 years of retirement.

You do not have to be rich to buy a commercial property for your pension either Commercial Mortgage Rates are still competitive and people are re-mortgaging their home to invest the money in a second property. The tenant pays the commercial mortgage for them. The reason, in most cases, is that they've completely lost faith in pensions.

Of course it's not much fun for would-be first-time buyers who are seeing property prices climb beyond their personal reach. Average increases are about 3 % per month, in London and in the south east of England this can be as much as 10% per month. But, as they have to live somewhere, they rent instead. Landlords are reporting lower yields on their rental property but as far as my friends are concerned, as long as the mortgage is covered they're quite happy. Rental is not about making profit in the short or medium term is about covering the mortgage and using the increased value of the property over time to cover your pension. You can either sell the property and use the equity or keep the rental. That decision is yours.
Commercial Mortgage property investors also benefit from flexibility. Investors can sell the property when they like and the cash generated can be used for whatever purpose they choose, unlike a pension when annuities have to be purchased.

Finance providers have taken this trend into account and many commercial mortgages offer flexibility to suit long-term investment for retirement funding. If a portfolio of commercial property is going to be purchased, experts advise spreading the risk across various property and industry types

I am writing on Finance and business finance for www.generalfinancecentre.comname