Was talking to a builder today and he was telling me he has done quite well in building offices/warehouses and the like in Tullamarine.
Has anyone here done any industrial development?
How is it different to Res. developing ?The builder i was talking to made me think, he said that the returns in industrial sales are a lot higher. Can anyone confirm this ?
Any other newbie infomation, in regards to bulding or buying would be greatly appriciated.
Aspiring property developer
Giulio Taranto
I looked into industrial building or develpoeing and there is better gains in it .
A friend of mine has been doing it for a couple of years he got into it by accident . He built a fatory for his bisiness and realised how much money he made and kept going. The market is hot at the moment it is always one step behind res.
But remember the profits are higher genarally speaking but the risk is higher to.
Risk verses reward.
I would be doing it by now but my focus has changed at the moment .Cheers Rick
Monopoly, my favourite game
hmmm i guess thats because there arn’t as many people looking to buy factories? then again the buildng costs are less.
or maybe im just wrong [blush2]
“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
There’s absolutely no money on the Industrial side of things. Residential is definitely the way to go…the tenants pay so much more.
But seriously…these concrete tilt panels have been a god send over the past couple of years…except of course if you are the poor sod standing under them when they fall, as has happened recently.
Yep – your wrong Giulio…there are oodles of factories to purchase, and lots of buyers as well.
The hardest challenge is acquiring as much land as possible (of late we have limited ourselves to greater than 85% land content vs purchase price) and still have the prop pay for itself..i.e. nuetral CF or better.
This has been our fundamental strategy for the past 18 months and has worked well for us.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Originally posted by Property Passion:Was talking to a builder today and he was telling me he has done quite well in building offices/warehouses and the like in Tullamarine.
Has anyone here done any industrial development?
How is it different to Res. developing ?The builder i was talking to made me think, he said that the returns in industrial sales are a lot higher. Can anyone confirm this ?
Any other newbie infomation, in regards to bulding or buying would be greatly appriciated.
Aspiring property developer
Giulio Taranto
i distinctly recall a 6 million dollar speculative tilt panel warehouse development on Kerry Road Archerfield Qld which sat vacant for over 12 months….despite ‘free rent’ and every other incentive being thrown around.
yes, huge differences in residential and industrial developments, rule of thumb, deep pockets for industrial and anything else overly speculative.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanehi Property Passion
Look for a 3a commercial (already da site)the units are for sale and the comm is to hold.
2br unit cost 210k to build a 200sqm comm cost 80k rent on the 2br about 300 per week and about 450k on the comm.
The cost are completely different but the shops that you see vacant are builders shops and if its out of profits, there is no hurry as the return is high.
comm developing is a very specialist area and not for the faint hearted but if included with a site with resi it is very interesting.
ps hows the unit going.here to help
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