Successful investors ''move into commercial property'' ? commercial mortgages

04 July 2007

Investors are more likely to look to the commercial property market once they experience success in the residential sector, it has been suggested.

Property firm Savills has said that less day-to-day responsibility when it came to maintenance and the availability of fixed loans were among the attractions of commercial property.

Landlords would also be more likely to seek commercial mortgages after owning residential property rather than vice versa, the firm noted.

"People tend, as they get more money, to actually want to do commercial. I think the other thing to remember with commercial is that you can always fix in your loans. So therefore even though interest rates are rising, most of the parties and most of the banks will probably be offering fixed loans," noted James Cannon of Savills.

"The commercial market probably has more lag than the residential market in the auction business. You''re seeing some movement, but you''ll find that the market is still fairly robust […] having some of your money in property is a good thing," Mr Cannon added.