ASK420: Does borrowing make sense anymore? PLUS: Should I start in commercial or residential?

The Property Podcast

Rob Bence & Rob Dix

News, Education, Business, Investing, Business News

4.8 • 2K Ratings

🗓️ 19 March 2024

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

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Summary

The place where YOUR questions get answered – it’s Ask Rob & Rob! (0:40) Alex works in commercial property, so that's where his background and know-how are. But commercial properties need more money upfront and have higher loan rates compared to residential ones. So, Alex is reaching out to Rob & Rob to get their take on which investment path he should go down. (3:52) Alan's got a handful of properties that he owns free and clear. He's picked up on the fact that interest rates are climbing, and knows he can use those interest payments to lower his tax bill. That's got him thinking - does it make sense for him to start borrowing? Enjoy the show? Leave us a review on Apple Podcasts - it really helps others find us! Sign up for our free weekly newsletter, Property Pulse Send us your question by calling us on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply) or click here to leave a recording via your computer instead. Find out more about Property Hub Invest See omnystudio.com/listener for privacy information.

Transcript

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0:00.0	Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.
0:07.1	Welcome to Ask Rob and Rob. It's another week of answering your property questions.
0:11.4	It works pretty well as long as you send your questions in.
0:14.4	So if you do have something on your mind and you'd love to know an answer, the way to get
0:17.9	it across to us and to get on the show is so easy. It certainly is, it's all in one safe place and that is the Property Hub website.
0:25.0	Go to Property Hub.org.
0:27.0	and you can get your question in there.
0:30.0	There's a few ways you can do it and you can even get your question to appear in the Sunday times as well.
0:35.0	Now that's very exciting, but what is more exciting is that we have a question to answer right here right now.
0:40.0	And that first question is in from Alex.
0:43.6	Hi Robin Rob, thank you for taking my message.
0:46.5	My question starts at the very beginning with what area
0:51.0	or strategy I should pursue in property. My background is that I'm a
0:55.3	commercial property solicitor and so my network is in commercial property. I have
1:00.8	clients there. I have other lawyers in commercial property, accountants,
1:06.3	surveyors, valuers, etc.
1:09.7	And I was wondering if I should really use that expertise in the investment side of things.
1:15.0	However, commercial property as you'll know requires a lot more upfront capital than residential, typically, and the lending on commercial properties are normally no
1:28.5	more than 60% of the value of the property compared to resi which typically 75%.
1:35.0	So my question is, should I start in commercial property investing given that that's where my knowledge and expertise are or should I start in residential property
1:49.3	given there's less upfront capital to start with. I guess my conundrum is that ultimately I would
1:56.4	have liked to be in commercial property because that's where my knowledge and
	...

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