Episode 90 – What Would I Do With £250,000 Today? If I had £250,000 to invest in commercial property today, what would I actually do with it? But actually, the number is almost irrelevant. Whether you have £100,000, £250,000 or £1 million to invest, the thought process should be exactly the same. And my answer probably isn't what you might expect. I wouldn't start by looking for a property. In this episode of The Commercial Property Podcast, I explain exactly how I approach investing in today's commercial property market, drawing on more than 30 years of experience in the sector. Rather than simply telling you which type of property I would buy, I take you through the thinking and decision-making process I use before spending a single pound. Because one of the biggest mistakes I see investors make is starting with the deal. They see a property, like the yield or the price and then try to make it fit their strategy. I believe it should be the other way around. We look at how I would decide what I actually want the £250,000 to achieve, how that would influence the type of commercial property I target and whether I would use borrowing to increase my purchasing power. I also discuss the niches I would be looking at, the importance of understanding occupier demand and why I would be particularly interested in opportunities where I can create value rather than simply wait for the market to create it for me. That could mean improving the lease, increasing the rent, strengthening the tenant covenant, changing the use, splitting the property or identifying another asset management opportunity that other investors have missed. We also look at something I believe is hugely important in the current market: having more than one way out of a deal. Markets change. Interest rates change. Tenant demand changes. Your own circumstances can change. Building flexibility into an investment from the outset can make an enormous difference to both risk and return. And, importantly, I explain why a high yield would not necessarily persuade me to buy. A 10% or 12% yield can look incredibly attractive on paper, but if the tenant is unlikely to remain, the rent isn't sustainable or there is little occupier demand for the building, that yield can disappear very quickly. The question isn't simply: "What return am I getting?" It is: "Why am I getting that return – and what risk am I taking to get it?" In This Episode I cover how I would: Decide what I wanted my £250,000 to achieve before looking at properties. Choose a commercial property niche based on my strategy and the underlying market. Assess occupier demand rather than relying purely on investment comparables. Decide whether, and how much, debt I would use. Look for opportunities where active asset management could create additional value. Assess whether today's market creates an attractive buying opportunity. Build multiple exit strategies into a deal from the outset. Balance income, capital growth and risk. Avoid being seduced by apparently attractive high yields. Decide whether a property is genuinely a good investment rather than simply a property that happens to be for sale. If you are a residential property investor considering moving into commercial property, a business owner looking to invest surplus capital or an existing commercial investor wondering where you should deploy your money, this episode will help you think about the decision differently. Because successful commercial property investing isn't simply about finding a property. It is about knowing what you are trying to achieve, understanding what creates value and then finding the right property to deliver it. Learn More If you want to learn how to find, analyse and add value to commercial property investments, visit www.suzicarter.comfor commercial property training, resources, live events and information about working with Suzi. Subscribe to The Commercial Property Podcast so you don't miss future episodes. And if you found this episode useful, please leave a review and share it with another property investor or business owner who might be wondering what they should do with their next £250,000.
