Commercial propertyUnlike residential property, commercial property has only recently become a more attainable investment for the majority of investors.
This asset class has features of both equities and bonds – it can generate income, like bonds, because of the rental income it generates and it also provides the opportunity for capital growth, like equities.
In addition, investing in commercial property provides you with the opportunity to diversify your investments. This is because this asset class has a very low correlation with other assets classes such as equities over the long term. Furthermore, commercial property doesn’t react in the same way as bonds and equities to changing economic conditions, so the addition of commercial property as an asset class can help to create a well rounded portfolio for many investors.
Commercial property is a specialised sector. You should contact a Financial Adviser if you have any doubts about investing in this sector. The value of an investment in commercial property is not fixed and you may not get back the amount you originally invested. There is no guarantee that the value of property assets will increase.
