Hello all !
just thought i would make my first post. I would one day like to get into the world of investing in industrial or commercial property. Id like some of you that have a little mor know how on this subject to enlighten me. What attracts me to this type of investing is the return.
Now for a few questions.1. what are some hot spots in the industrial world?
2. where should a newbie start looking if they wanted to spend 300- 350k ?
3. whats with the land content? how important is it?
4. factory with minimal land or shed with lots of land content?
5. whats the best way to evaluate an industrial site? it cant be JUST about the figures.PS anything that i havent mentioned that i should know ?
thanks in advance
Hi Joolz,
For some info from this site look up some old posts by Dazzling, he has a fair bit to say about industrial property, and also has an entertaining writing style. If you buy a small shed or industrial property make sure thsat there is strong demand in the area, a lot of small business owners purchase their own facilities at the sort of price you quoted, so vacancy can be an issue.
Finance is another issue you might want to consider, it is slightly more expensive than residential finance, especially for smaller loan amounts. You also need a larger deposit, typically 30%, although you can go higher. Servicability calculations are also often less favourable than are residential loans because commercial loans are typically over a shorter period.
Regards
Alistairthanks for your input
Check out this months (August) Australian Property Investor, there is a Investor Profile on a guy who is into Industrial Property, Dazz I believe his alias is. Land content is always the big part of the deal for him. Cheers Dazz, it’s good to put a face to the attitude.
Mal
Getting out of your comfort zone, can help you become comfortable
Hmm servicabilty could be a bit of a problem for me. I was even considering on selling my existing house (as im building a unit to live in) just to get me started in the industrial/commercial world.
I want to set myself up wit some guideline when sifting through all the properties out there. At the moment i look at these props and they all look the same [confused2]
going to go pick up that copy of property investor today. Should make for a good read.
Hi Joolz,
I know a few commecial buyers agents who operate in Victoria, two of them that I know well enough to recommend, if you want some professional assistance with locating and purchasing commercial IP’s are:
Chris Lang of Gardner & Lang http://www.gal.com.au
Stuart Bonning of Bonning PropertyChris Lang’s contact details can be found on his web site, I’d be happy to give you Stuart’s privately, but he doesn’t overtly advertise so I’m not sure if he’d like his phone number posted on a public forum. Both are based in Victoria by the way, Chris in the CBD and Stuart in Hampton.
Regards
AlistairCommercail and Industrial proeprty investment is very different to residential investment – you can’t use the same rules
You can get some idea of the difference in this article
http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auThere is also a new site under construction which offers free diy ebooks at www,apin.com.au go check it out …
D
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