Ready to Hit Pay Dirt with Industrial property?
As investors, we are all looking for returns? Right?
In the chase for returns, we generally stick to what we know. Right?
Most of us prefer to play it safe rather than risk the lot. Right?
That is investing 101? Right? … Wrong
You don’t need to risk the lot to get a good return from property.
Don’t get me wrong. Real Estate investing is competitive, and smart investment is good investment. So I prefer to look for returns where others don’t.
While you might like new and shiny, there is demand for places with more industrial uses, like panel beaters, electrical warehouses, big box stores even gymnasiums
Most novice investors steer clear of industrial because they think it doesn’t have the prestige of other property types.
But industrial can be as solid an investment as a Brick…. Warehouse.
And I am not alone in this view.
In the last 12 months, over $4 billion of Industrial property in Melbourne, Sydney and Brisbane changed hands. A 45% increase on the prior 12 months.
Have I caught your attention?
Property investing is all location, location, location.Plus of course the deal itself. Add to this, good tenants and a good lease for a great long term investment. There are two approaches for the novice wanting to enter.
Inner City or Outer Suburbs.
Inner city industrial is all about Panel shops, small garages and storage facilities, art studios, hardware
Many inner city suburbs in our capital cities were previously working class and littered with factories and garages.
Many of these are leased and could be rezoned to commercial and residential- a great potential upside.
Secondly, outer suburbs.
Industrial estates are popping up all over the place.
These outer suburban estates provide cheaper land and usually closer to road, rail and sea. Exactly what some industrial tenants are looking for.
But there is one thing you should remember if you are looking to buy your first small or large industrial property.
Some industrial properties are built for a specific purpose. Be it a distribution centre, refrigeration centre, petrol station or garage.
The type of industrial property can limit the number of tenants willing to sign a lease should it become vacant, so have that in mind when you are searching.
Look for properties that are adaptable for other potential uses, keep in mind the basics of commercial property investing and do your due diligence.