Insurance News Archive
Hidden threat of commercial property boom
Property investors looking to cash in on Manchester's boom in office space are being warned to think carefully before making any decisions.
Over £2 billion worth of commercial property in the UK went under the hammer last year as a result of low interest rates and increased demand for alternative property, reports the Manchester Evening News.
However, experts are now encouraging private investors to be streetwise and avoid getting lumbered with a bad deal when it comes to commercial property.
"The residential market in Cheshire and south Manchester is overheated and commercial property seems to be a hidden gem," aspiring commercial property owner, Peter Davies, told the newspaper.
Peter Flemming, head of property at law firm Betesh Fox, commented that very few people who are successful in the commercial property market are rookies and most investors have large portfolios.
Mr Flemming concludes that small investors should be aware that acceptance of a bid on commercial property creates a legally binding contract where they must pay a ten per cent deposit.
© Adfero Ltd
18 Apr 2006