Buy To Let Commercial Office vs Residential BTL (Compared)

I compare buying this Commercial Office Investment to a Residential Buy To Let to see if it's worth it or not. Would you buy it?

In January last year, I thought it was a good idea to buy this fully tenanted commercial office building, right in the middle of lockdown 3 when the government was advising people to work from home! This sounds risky to some. Well it does to me too :)

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Adventure - Hanvai

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To help you better understand why I decided I wanted to buy this office block, I’m going to go through the pros and cons as I saw them, and then compare what you can buy right now for a similar amount of money if you were to buy a residential BTL property. Essentially playing it safe!!

My investment strategy right now is to buy commercial property for cash flow, that has a potential for some sort of uplift through sub-division or development.

I show you all the numbers on this potential deal so you can see if it cash flows and worth the risk for the reward from your own perspective

I compare this office properties numbers with 3 other buy to let hotspots in London, Nottingham and Liverpool.

Watch the video to find out if I ended up buying it and whether it is a better investment compared to the BTL areas that I walkthrough in rightmove.

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[DavidslvPT]

Thank you for the more in-depth explanation. This is the first video I watch, I hope to see a current video on how the commercial property did for you. Thank you once again.

[meenabuditi]

Thank you for detailed explanation about commercial property let. Would you kindly share tenant interview questionnaire?

[AmberCharles-sj]

Great video. Thank you for sharing. Truly appreciated the look at the different markets and their increases over time.

[Vahakn]

These vids are so in depth its great.
Would you share your interview questionnaire?
Also - lifts are good for disabled people!
Access for all.

[alexwilson-smith]

Great vid. Is there a way to estimate future capital appreciation of commercial property?

[Patsa]

great editing and B role, great info, thank you! If you don't mind leveling down the music or up on your voice and filter out high frequencies. cheers my good sir

[topboyuk]

Hi

Can I ask where you found this lot?

Great video

Thanks

[mattrobinson]

Thanks for this, super useful and well presented, I'll check out your other videos.
In terms of the ROI comparison with the residential properties, surely a typical 25% deposit on a BTL would mean you have to front less cash which would improve your ROI? Or am I missing something?

[noble]

Brilliant video. More like this please 💪💪

[willpage]

Hey Stephen, thanks for the video. How come you didn't include the service charge into your calculations on the commercial office space to derive your £2201 cash flow? With the service charge should it have been £5, 558 cash flow (if you add income and service charge)? I know you said you wouldn't bother with the service charge and just have FRI lease, but still you included it in the numbers? Sorry for any confusion, and thanks again for the great videos.

[BMWFR]

Thank you for explanation and video very helpful. Only didn’t understand What is service charge is for do you pay as land lord ? Or tenants?

[hmco]

Thanks for sharing. May I ask how did you find this property? Was it though agent advertisement or off market deal?
Thanks

[richardburke]

Thanks Steve another great Video ! Is 5.2% typical rate on a commercial BTL ? What happens if your tenant stops paying, how do you ensure you get the rent? Are you protected ? What would the business rates be on this specific property ? Thanks Rich