The Better Buy? SME Business vs Buy-to-Let Property
- Alexander Kalis
- Jul 15
- 1 min read
Most investors default to property. It’s familiar. Tangible. Passive.
But what if there’s a better way to put your capital to work?
In our latest Archimax research briefing, we explore an often-overlooked comparison between buying a cash-flowing SME and investing in buy-to-let property, and the findings may surprise you.
Here’s what the data and field experience reveal on SME Business vs Buy-to-Let Property
Typical SME acquisitions generate yields of 20 to 30%, versus 5 to 8% for UK property
SME income can begin from day one, with no voids, agents, or lengthy renovations
SME value can be actively grown, unlike property, where appreciation is slower and largely outside your control
Growing SME profits can accelerate debt repayment, helping build equity faster than traditional mortgage amortisation
Business exits may qualify for 10% tax (BADR), compared to up to 28% CGT on property
Property is passive, while SME deals allow for active oversight through governance, alignment, and board participation
Don’t want to end up running a business yourself? We don’t either.
Archimax supports experienced and proven serial SME buyers through structured co-investments alongside a professional network. If you are exploring opportunities in this space, we are happy to share insights.
Swipe through or download the PDF for offline reading.
Sources: CFO Consultants, Avondale, InvestFourMore, NatWest Bank, Investopedia, ServiceFusion, Dains UK200Group, Stanford GSB, IESE Business School, BuyThenBuild
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