Time to be positive about commercial mortgages?

07 September 2009

Written by Jeni Browne

Business mortgages could soon be in higher demand as reports suggest that the commercial property market is taking a turn for the better.

The Investment Property Databank Monthly Index is showing signs of a recovery in the sector after two years of difficulty.

Writing for the Telegraph, managing director of independent financial advisers Whitechurch Securities Gavin Haynes said that there are a number of things for people to consider before investing in a property fund.

"Don't go overboard," he explained. "Exposure to UK commercial property may be starting to look interesting, but should only constitute a maximum 15 per cent of a well-balanced portfolio."

He also suggested that in order to "achieve the full diversification benefits", investing primarily in physical assets may be most beneficial. This would involve buying assets such as office blocks, shops and factories.

Last month, CB Richard Ellis reported that July's UK commercial property saw total returns in the commercial property market increase for the first time since mid-2007.

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