A multi-purpose UK property investment, as its name suggest, is an asset designed to serve more uses and therefore is versatile in nature. It’s a combination of residential and commercial spaces in one.
This type of investment has its perks and if you’re planning or at least considering putting your money in one then you’ll definitely want to know the various benefits it offers. Check out this list and see for yourself.
1. It’s versatile to say the least.
A good example of a multi-purpose property would be a condominium building. Many of these assets are designed to have retail spaces at the ground floor, office spaces in the next few floors and then residential units for the rest. The dynamics of this type of investment screams versatility.
2. It caters to more than one market.
Because it serves not just one but two and sometimes more markets, it is able to tap tenants of various kinds. It won’t be boxed into a particular category. It allows investors to cater to more than one market thereby allowing the asset to earn not just from one specific group.
3. Its flexible nature decreases tenant vacancy.
Because it can be a residential, commercial and retail space in one (or a different combination of these), there are more users or intended audience. The space won’t have to suffer that much losses should a particular group play weak in the market at some point. For example, if the commercial units aren’t doing well you still have residential units to draw income from and vice versa. Losses and risk are therefore better diversified.
4. It provides a stable income source.
Multi-purpose investments are a good source of income on their own. Add to this the fact that it taps various types of tenants and audience. Putting them up for rent is one great way to establish great returns. It has in fact become quite a lucrative investment for many providing financial freedom. Of course, that comes with the right practices and adequate management.
5. It allows for rent and asset appreciation.
A multi-purpose UK property investment has more chances of appreciating in value. Why so? Because these assets serve various markets, they are generally situated in prime locations and if not, they tend to encourage development in its surrounding areas. There’s heavy foot traffic too which helps pique the value up. When this happens, rental rates can be increased over time.