One of the greatest investments of all time lies in real estate, regardless of whether its commercial or industrial, real estate is the way to go! If your main objective is cash income and not only capital development, then you must opt for commercial or even better industrial properties to invest in. The reason behind this statement is the fact that industrial properties are known for a high turnover in comparison to commercial properties.
In regards to understanding and managing industrial properties, there are different factors you must consider. However, before you invest it is important to know both the pros and cons of industrial property. And more importantly what exactly is industrial property?
Here are some of the pros of buying an industrial property.
One of the greatest advantages of investing resources into an industrial property is a higher return. It isn't unusual for industrial land to earn higher than other commercial properties. If income is your main goal then explore some of the prime industrial land Melbourne along with an expert.
Maintaining the Building
The maintenance of the building will be the responsibility of the tenant especially if they run in retail or storefront area. Since that will directly affect their business, it will be their duty to keep the building maintained, if they want the customers to come. Your tenants must pay for other repairs, water bills, maintenance fees, and other fees as required.
Take A Break
Any, I mean any type of business does not require your attention 24/7. Whether it is retail, an office, or a factory, you can take a break without being bothered about midnight emergencies and urgent repairs. Most commercial property tenants always have some type of monitoring alarm system. So even if anything goes wrong, the authorities will be notified without any worry.
An Unbiased Price
In comparison to residential properties, it is much easier to set the price of a commercial property. Why do you ask? Well, all you have to do is look into the current owner's income statement and set an appropriate price. Whilst residential property prices revolve around factors that are private and emotional.
These are some of the most common disadvantages of industrial properties
Commercial areas are more crowded in comparison to residential areas, so there’s a higher risk of damage in your property or someone getting hurt. Higher chances of someone crashing into the parking lot or damage some assets in your property. There is also the vacancy risk that you need to consider. Once a tenant leaves, it can take months to find another or even a year.
Hire Professional Help
It is not possible to run the entire show with one man. You must hire professional help with repair and maintenance issues.
Take your time and consider all the advantages and disadvantages before you invest your money. If your main aim is cash flow, go for an industrial property. But if you want to take it easy invest in residential properties.