Forum Replies Created
>You can buy small Commercial Industrial properties from 130,000$ to 200,000$ to suit your budget, with a 6-7 % return on rent.
> My insurance broker has retired with his house in Mount Eliza paid off, and bought 2 Industrial 1 investment properties as a nice money earner on the side to help with retirement.
> My father did the same. Family home paid off, and 2 small Industrial Zone 1 properties with a 6-7% return on rent.
> Concrete factories also are more maintenance free then houses or flats, Troublesome tenants in Residential (10 week process through VCAT) can do thousands of dollars in willful deliberate damage, that Insurance will only partly cover. Factories have 4 concrete walls and a tin roof ( very low maintenance). Troublesome tenants easily evicted. Give them a 2 week "notice to quit" and change the locks.
> Our family has owned small Factories since 1986, and the vacancy rate is very low ( just don't get greedy with the rent.) My 168 square meter concrete factory in Dandenong was about to be vacated ( lease expired) so we put an add in before the tenant vacated. Add went on the internet on a Wednesday afternoon, and got someone new in the next morning with a 2 year lease.
He moved into the premises the very same day the old tenant vacated.>They are also a great learning experience when doing business ( put you in touch with tenants who do well financially) , And a stepping stone to starting your own business.
> With Commercial it's all about "traffic", "street frontage" and " parking". Business Zone 1 ( retail) and Industrial Zone 1 ( factories and workshops) are the best you can get.
> Great thing with small factories, you can do Industrial leases and Retail leases ( just apply to council, they usually ok it if there's enough parking)
> Factories with a Retail lease are great if they are in a busy location. I stay away from Retail shops as most of this has moved to the large shopping centers like Westfield. But there are some good buys around
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> I tried to buy an Industrial Zone 1 factory in Carrum Downs a couple of years ago, but it sold in 6 hours ( 4 guys in line before me).>It was a new 370 square meter factory with a retail lease right on Frankston Dandenong road. Asking price 355,000$, with a 25,500$ a year long term tenant.
> Next time I'll go straight to the Estate agent and sign the Contract, subject to measurements of 355 sq meters.
> Best part with Commercial is the tenant pays all "outgoings" Body Corporate, Insurance, Council Rates, Water etc.
> Our family has 12 small Commercial factories workshops. They are easy to rent out, great return on rent, and low maintenance. If you buy a Retail shop or Factory in a good spot, you never sell it.
