The commercial sector is faring better than domestic property in the current climate, making closed bridging remortgages still popular.
There's no doubt that the domestic property market is taking a hit at the moment. The commercial property market, whilst not escaping completely, is in much better shape, however. That means that if you're a property investor looking for new opportunities, you can take advantage of closed bridging remortgages either to buy under-valued domestic property or to make the most of the commercial market.
How closed bridging remortgages can help
If you choose wisely, now could be a great time to invest in property. Whilst you're unlikely to make a quick buck from buying and selling in a short space of time, a long-term approach could see you build up a portfolio of domestic and commercial property that will provide you with an income now and some capital when the market recovers – even if that's 10-15 years down the line. A closed bridging mortgage can help you to make the most of undervalued property on the domestic market, giving you the cash you need to invest in the more secure commercial sector.
In this type of market, you have to do your research properly before you apply for closed bridging finance. Properties may be losing value now, but this trend is likely to continue for several years, according to economists, and that means that you'll need to be prepared to hold onto the property for some time before you can realise a profit by selling. Commercial property offers a more stable investment at present as property is still attractive and rental income is good. The same principles that apply to buying below-market-value domestic properties can work for commercial property. If you can find property that you think is in a good location and will be easy to rent out – a property with tenants already in it is even better – use your skills to negotiate a below-market price for the property, and then take out a closed bridging remortgage. This will enable you to pay the lower price and then remortgage straight away for the full market value. You can pay off your lower loan and invest the excess cash in your next project.
If you're in the property business, the problems in the housing market shouldn't put you off. You may have to look a little harder to find the perfect property, but the processes are still the same and a closed bridging mortgage will enable you to release cash from your properties so that you can move on to the next one. Domestic or commercial, property can still be a winning investment.
Faster Bridging Finance has developed a new approach to commercial bridging loans that saves you time, money and hassle. Developed specifically to help those who invest in property occasionally or who have large property portfolios and want to be able to get cash out quickly, the service uses a dedicated mortgage broker and conveyancing solicitor so that there are no hold-ups, just a straightforward bridging deal. To find out more about how Faster Bridging Finance can help you, order your Free report now, call us on 01908 423717 or email finance@fasterbridgingfinance.com.