Purchasing warehouses, factories, and workshops can be cheaper than you think. However, there are many differences between industrial property and residential property that potential investors need to understand.
Industrial property’s income yield is higher than residential property, at about 6 to 9 percent compared with 3 to 3.5 percent, but comes with higher risks:
- A much more complicated lease, usually organized by a solicitor.
- When they become vacant, they are usually vacant for a long period of time.
- Leases are based on net rent – such as council rates and maintenance.
Buyers should look for properties with quality tenants, a flexible layout, and a location close to freeways for transportation purposes.
When purchasing smaller industrial property within a complex, check for sufficient car park bays.
Thinking of Investing in Industrial Property? Phone us now on 0433 338 729 so we can help kickstart your investment with the best interest rate!